Private equity, venture capital pump in USD 1.6 billion investment in August: Report

According to EY’s private equity monthly deal tracker report, August 2018 recorded $830 mn across 18 exits with two $200 mn plus deals. “PE/VC activity continued its strong run with $1.6 bn investments received in August 2018. Till August end, the sentiment towards India remained strong, with funds further adding to their dry powder, as evidenced by $2 bn raised during the month, adding to the already high levels of dry powder of close to $40 bn available for investment into the country,” EY’s partner and national leader (PE services), Vivek Soni, said.

During the reporting month, four deals were recorded of value greater than $100 mn, accounting for 72 pc of total investments against $4.7 bn recorded across six deals in August 2017.

KKR’s $530 mn buyout of 60 per cent stake in Ramky Enviro Engineers was the largest deal in August 2018. From a sector point of view, power and utilities led with $532 mn investments across two deals followed by real estate with $360 mn invested across two deals. Financial services, which has been one of the top sectors over the previous months, recorded just $42 mn in investments across six deals. 

In terms of number of deals, technology with seven deals was the leader, the report said. Year-to-date, PE/VC investments till August 2018 have crossed $18.7 bn, 9 per cent higher compared to the same period last year. During August 2018, 18 exits totalling $830 mn were seen, which is double the value compared to July 2018. The largest exit in the reporting month include $ 225 mn part exit from Ola a cab aggregator, by Helion Ventures, Accel India, Bessemer and others in a secondary sale to Temasek.

The other large exit during the month saw Warburg Pincus sell 8.3 per cent stake in AU Small Finance Bank for $223 mn in the open market. Moreover, the successful closure of the $16 bn

Walmart-Flipkart deal in early September would trump all exits so far in the country’s PE/VC industry and also eclipse the dollar value of exits in all of 2017. There was one PE backed IPO in August 2018, which saw Micro Ventures exit its stake in Credit Access Grameen for $71 mn, the report said. There were $3 bn worth fund raise plans announced in August 2018.