How do you see the opportunity in your obstacles?
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How do you see the
opportunity in your
obstacles?
To reach operational excellence, private equity
firms need the right insights to learn as they go —
discovering new ways to overcome obstacles and
seize opportunities.
The IVCA-EY monthly PE/VC roundup –
March 2020
The better the question. The better the answer.
The better the world works.
Our thoughts “ The COVID-19 pandemic has caused severe dislocations across markets and with many countries under lockdown, economic activity has contracted significantly. As a consequence, there has been a precipitous decline in Indian PE/VC investments from a high of US$2.5 billion in January to a three-year low of US$818 million in March, making 1Q2020 the weakest quarter for PE/VC investments in past three years with US$5.1 billion in investments. With lockdown extension, travel restrictions, difficulty in performing due diligence and in person meetings, PE/VC investment activity across all deal types is expected to remain subdued over the next few months till some clarity over FY21 and FY22 projections emerges. Exits have shown some resilience in 1Q2020 primarily due to the large PE exit in an IPO transaction. If we keep this one deal aside, March exits would be at a 41month low. Going forward, with significant correction in the capital markets and uncertain revenue projections of private companies, exit activity is expected to slow down considerably in coming months as funds hold off exits till asset prices recover. In the near-term, we expect most general partners (GPs) to remain focused on their current portfolios, helping their company managements in ensuring business continuity rather than sourcing new investment deals. Overall, the PE/VC industry is sitting on ample amount of dry powder and funds that have raised capital recently (2019 and 2020) will be better positioned to make good use of this opportunity to pick up stakes in quality businesses at attractive valuations. Page 2 27 April 2020 EY analysis of VCCEdge data
What will you invest in as investing changes? Quarterly trend analysis – 1Q2020 The better the question. The better the answer. The better the world works.
Key trends: quarterly
Investments
► On a quarterly basis, investments in 1Q2020 declined by 57% and 54% compared to 1Q2019 and 4Q2019 respectively (US$5.1 billion in
1Q2020 vs. US$11.7 billion in 1Q2019 and US$10.9 billion in 4Q2019). 1Q2020 has been the lowest performing quarter for PE/VC
investments in the past 12 quarters. In terms of volume, deals declined by 3% and 15% compared to 1Q19 and 4Q19 respectively (227
deals in 1Q2020 vs. 235 deals in 1Q2019 and 268 deals in 4Q2019).
► The decline in PE/VC investments in 1Q2020 was mainly on account of decline in large deals (value greater than US$100 million). At
US$2.2 billion, large deals in 1Q2020 declined by over 70% compared to US$9.1 billion in 1Q2019 and US$7.6 billion in 4Q2019.
1Q2020 recorded the lowest quarterly value of large deals in 14 months. Large deals have witnessed a precipitous decline since January
when the pandemic crisis came up on radar screens globally, declining from US$1.4 billion in January to just US$112 in March. The
largest deal announced in 1Q2020 saw Goldman Sachs and Varde Partners take over the debt of RattanIndia Power Limited for US$566
million followed by Canada Pension Plan Investment Board (CPPIB), Allianz Capital Partners and Ontario Municipal Employees Retirement
System’s (OMERS’) US$246 million investment in IndInfravit Trust.
► Most of the prominent sectors have recorded sharp decline in value invested in 1Q2020. Infrastructure sector was at the top in 1Q2020
with US$1 billion invested across nine deals, 71% lower compared to the value recorded in 1Q2019. Financial services sector was next in
line with US$903 million invested across 35 deals, 66% lower than the value recorded in 1Q2019. Other prominent sectors like e-
commerce, technology and real estate have also recorded declines in the range of 50% to 80% on a y-o-y basis. Education (US$549
million in 1Q2020 vs. US$86 million in 1Q2019) and life sciences (US$296 million in 1Q2020 vs. US$188 million in 1Q2019) were the
only sectors that recorded significant increase in value invested.
Page 4 27 April 2020 EY analysis of VCCEdge data
Key trends: quarterly
► All major deal segments except start-up and credit investments recorded sharp decline in deal activity in 1Q2020. In terms of deal type,
growth capital recorded highest value of PE/VC investments in 1Q2020 of US$1.8 billion, 58% decline compared to 1Q2019 (US$4.3
billion) and the lowest value in 12 quarters, followed by start-up investments that recorded US$1.5 billion in investments, twice the
value recorded in 1Q2019 (US$723 million). Buyouts recorded seven deals worth US$293 million, 92% decline in value compared to
1Q2019 (US$3.9 billion). Private investment in public equity (PIPE) deals in 1Q2020 (US$643 million) recorded a decline of 68%
compared to 1Q2019 (US$2 billion). Credit investments recorded a minor increase of 3% (US$820 million in 1Q2020 vs. US$795 million
in 1Q2019).
► As the lockdown gets extended across India, the adverse impact of the pandemic induced slowdown on various businesses could become
pronounced, prompting most funds to take a wait-and-watch approach and reassess potential targets and valuation multiples. As a
result, we could see the deal activity dwindle even further in the coming months from the low levels recorded in March 2020 (US$818
million).
► While buyout activity is expected to dry up significantly give the travel restrictions and inability to perform full scale due diligences and
face-to-face negotiations, growth capital could once again emerge as the top deal type in coming quarters as it becomes the need of the
hour for most companies.
► PIPE deals will most likely be the first to pick up as funds look to deploy cash in quality listed businesses available at cheap valuations.
Credit and special situation funds are also expected to see an uptick in deal activity as more and more corporates become amenable to
expensive structured credit in the absence of funding from regular channels that are already facing liquidity tightness.
Page 5 27 April 2020 EY analysis of VCCEdge data
Key trends: quarterly
Exits
► On a year-on-year (y-o-y) basis, exits increased by 59% in terms of value in 1Q2020 (US$1.9 billion vs. US$1.2 billion in 1Q2019)
primarily due to the large US$1 billion partial exit by Carlyle from SBI Cards through an offer for sale during the IPO. Compared to
4Q2019 (US$3.3 billion across 42 deals), exits declined by 43% in terms of value and 12% in terms of volume. With a severe dislocation
in capital markets, valuations have witnessed sharp corrections across sectors which could cause further decline in the exit activity in the
coming quarters as funds decide to hold on to investments till asset prices recover rather than sell them at a deep discount.
► In 1Q2020, exits via IPOs (US$1 billion) was the highest in terms of value due to the offer for sale (OFS) in the SBI Cards IPO, which
accounted for 52% of exits by value followed by open market exits and strategic exits at US$410 million and US$397 million,
respectively. Exits via secondary sale were the lowest at US$25 million, a 26-quarter low.
► Given the turmoil in capital markets, open market exits are expected to remain subdued while IPO plans get pushed back further. With
funds focused on managing current portfolios, secondary deals are expected to slow down considerably. Strategic M&A is expected to go
silent for some time as companies focus on conserving cash and reevaluate acquisition strategies and valuations get rerated as more
information on the impact of the pandemic induced slowdown becomes available.
► From a sector perspective, financial services (US$1.6 billion across 13 deals) recorded the highest value of exits in 1Q2020, accounting
for 87% of all exits by value in 1Q2020, which was mainly on account of the large PE exit in the SBI Cards IPO.
Fund raise
► 1Q2020 saw US$1.4 billion in fund raise, 50% lower compared to US$2.8 billion raised in 1Q2019. The largest fund raise in 1Q2020 saw
EQT and Temasek fund a US$500 million JV, O2 Power, to invest in renewable energy projects. New fund raise plans announced in
1Q2020 stood at US$5 billion compared to US$3.8 billion in 1Q2019.
► In view of the severe dislocation in the public equity and bond markets, some LP’s may have to revisit their allocation towards alternate
assets, of which private equity is a part of. Going forward, fund raising is expected to become more difficult; especially for new funds
that have had limited experience in investing across economic cycles.
Page 6 27 April 2020 EY analysis of VCCEdge data
PE/VC quarterly headline trends: investments
US$m Total PE/VC investments #
18,000 268 266 268 300
235 227
15,000 203 250
182 194 190
12,000 165 163 200
138
9,000 150
16,012
6,000 11,146 11,746 10,918 100
8,693 8,307 9,702 8,261 9,294
3,000 6,096 7,205 50
5,057
- -
2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020
Value (US$m) # of deals
US$m PE/VC investments split across asset classes
16,000
5,258
12,000
1,695 895 3,507
840 2,511 3,090
8,000 846 523 863 218
1,659 1,490 2,657 765
1,450
617 2,242 1,440 1,474 1,378 1,028
1,053
4,000 8,610 7,943 8,243 318
6,593 6,749 7,063
5,606 5,242 5,174 5,258
4,427 3,710
-
2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020
PE/VC investment (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 7 27 April 2020 EY analysis of VCCEdge dataPE/VC quarterly headline trends: exits
US$m Total PE/VC exits #
7,000 70 80
65 64
6,000
52 52 60
5,000
41 42 42
4,000 36 36 37
32 40
3,000
4,550 4,755
2,000 3,789 3,945 20
2,681 3,313
1,000 2,420 2,658
1,857 1,895
18,016 1,192
- -
2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020
Value (US$m) # of exits
US$m PE/VC exits split across asset classes
7,000 9 13
6,000
5,000
327
844
4,000 276 161 82 284
236 7
3,000 104 348
111
354 201
2,000 3,947 234 3,829 89
3,392 262 3,661
2,570 133 2,958
1,000 2,066 92 2,353
1,361 1,807
17,994 967
-
2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020
Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 8 27 April 2020 EY analysis of VCCEdge dataPE/VC quarterly headline trends: fund raise
US$m Fund raise #
4,000 17 20
15 15
14
3,000 13 13 15
12 12
11 11 11
9
2,000 3,809 10
2,607 2,479 2,794 2,749
1,000 2,234 2,335 5
1,533 1,701 1,430
1,304
719
- -
2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020
Total funds raised (US$m) Total # of funds raised
Page 9 27 April 2020 EY analysis of VCCEdge dataPE/VC investments (excluding infrastructure and real estate)
1Q2020
Total investments (US$m) # of deals
1Q2020 3,710 1Q2020 207
1Q2019 6,749 1Q2019 200
Deal type US$m Deal type #
Credit investment 218 Credit investment 18
325 14
Buyout 84 Buyout 3
1,176 9
PIPE* 579 PIPE* 17
2,023 16
Start-up/Early stage 1,402 Start-up/Early stage 133
707 121
Expansion/Growth 1,428 Expansion/Growth 36
2,518 40
Deal size US$m Deal size #
>US$100m 1,236 >US$100m 8
4,791 17
907 US$50m-US$100m 13
US$50m-US$100m 548 7
877 US$20m-US$50m 26
US$20m-US$50m 779 24
341 US$10m-US$20m 22
US$10m-US$20m 236 16
349Top PE/VC investments
Top PE/VC investments excluding infrastructure and real estate in 1Q2020
Company/Project Investors Sector Stage US$m Stake (%)
IndoStar Capital Finance Limited Brookfield and Others Financial services PIPE 202 40
Think and Learn Private Limited
Tiger Global Management Education Growth capital 200 NA
(BYJU’s)
Think and Learn Private Limited
General Atlantic Education Growth capital 200 NA
(BYJU’s)
Zomato Media Private Limited Alibaba Group E-commerce Growth capital 150 NA
Apollo Tyres Limited Warburg Pincus Automotive PIPE 150 NA
Naspers Ventures, Meituan-
Bundl Technologies Private Limited Retail and consumer
Dianping, Wellington Early stage 113 NA
(Swiggy) products
Management
Temasek, Accel capital, Epiq
Capital Fund, Chiratae
CureFit Healthcare Private Limited E-commerce Early stage 112 NA
Ventures, Ascent Private
Equity Fund and others
Blume Ventures, Nexus
Sorting Hat Technologies Private Ventures, Sequoia Capital
Education Early stage 110 NA
Limited (Unacademy) Steadview Capital, General
Atlantic and others
TVS Supply Chain Solutions Private
Gateway Partners Logistics Growth capital 100 NA
Limited
LAVA International Private Limited GEM Global Yield Fund Telecommunications Growth capital 90 NA
Page 11 27 April 2020 EY analysis of VCCEdge dataPE/VC investments: infrastructure
1Q2020
Total investments (US$m) # of deals
1Q2020 1,028 1Q2020 9
1Q2019 3,507 1Q2019 12
Deal type US$m Deal type #
Credit investment 602 Credit investment 2
350 1
Buyout 127 Buyout 3
1,940 2
PIPE* PIPE* 1
-
53 Start-up/Early stage 2
Start-up/Early stage
246 Expansion/Growth 1
Expansion/Growth 9
1,218
Deal size US$m Deal size #
>US$100m 939 >US$100m 3
3,341 5
US$50m-US$100m US$50m-US$100m
52 1
US$20m-US$50m 86 US$20m-US$50m 2
99 2
US$10m-US$20m US$10m-US$20m
3 1PE/VC investments: real estate
1Q2020
Total investments (US$m) # of deals
1Q2020 318 1Q2020 11
1Q2019 1,490 1Q2019 23
Deal type US$m Deal type #
Credit investment Credit investment
120 3
Buyout 82 Buyout 1
753 3
PIPE* 65 PIPE* 1
14 Start-up/Early stage 7
Start-up/Early stage 5
16
158 Expansion/Growth 2
Expansion/Growth 12
601
Deal size US$m Deal size #
>US$100m >US$100m
1,006 4
US$50m-US$100m 305 US$50m-US$100m 4
307 4
US$20m-US$50m US$20m-US$50m
133 4
US$10m-US$20m US$10m-US$20m
12 1
14 5Top PE/VC investments
Top infrastructure and real estate investments in 1Q2020
Company/Project Investors Sector Stage US$m Stake (%)
Goldman Sachs, Varde Credit
RattanIndia Power Limited Infrastructure 566 NA
Partners investment
CPPIB, Allianz Capital
Partners, OMERS
IndInfravit Trust Infrastructure Growth capital 246 24
Infrastructure Management
Inc.
660MW solar assets of Acme
Actis Infrastructure Buyout 127 100
Cleantech
Goldman Sachs (Principal
Vatika Limited Real estate Growth capital 86 NA
Investments)
Golden Jubilee Hotels Private
Blackstone Real estate Buyout 82 100
Limited
Nine assets, mostly in residential
Motilal Oswal Real Estate Real estate Growth capital 73 NA
projects
Prestige Estates Projects Limited GIC Real estate PIPE 65 NA
Ampsolar India Private Limited LGT Lightstone Aspada Infrastructure Early stage 50 NA
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 14 27 April 2020 EY analysis of VCCEdge data1Q2020 PE/VC investments: sector-wise
Top sectors by value (US$m) Top sectors by # of deals
1,028 Technology 39
Infrastructure 27
3,507
Financial services 35
903 48
Financial services
2,672 E-commerce 21
25
549 17
Education Life sciences
86 11
Retail and consumer 16
488 12
E-commerce
812
Food and agriculture 15
23
356
Technology 15
873 Education
8
318 Media and entertainment 14
Real estate 15
1,490
Real estate 11
296 23
Life sciences
188 9
Infrastructure
12
1,119
Others 33
2,118 Others
31
1Q2020 1Q2019
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 15 27 April 2020 EY analysis of VCCEdge data1Q2020 exits: analysis
Total exits (US$m) # of deals
1Q2020 1,895 1Q2020 37
1Q2019 1,192 1Q2019 36
Exit type US$m Exit type #
Open market 410 Open market 17
519 8
Secondary 25 Secondary 7
445 8
Strategic 397 Strategic 13
186 12
64 Buyback 3
Buyback 3
43
1,000 IPO 1
IPO 1
-
Top sectors US$m Top sectors #
Financial services 753 Financial services 13
84 4
Life sciences 117 4
31 Food & agriculture 2
Infrastructure 89
133 Life sciences 3
26 2
Food & agriculture 29
Infrastructure 2
Industrial Products 11 2
36
Industrial Products 2
Technology 4
511
Others 12 Others 13
368 22
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 16 27 April 2020 EY analysis of VCCEdge dataTop exits
Top exits in 1Q2020
Company/Project Sector Sellers Buyer Exit type US$m Stake (%)
SBI Cards and Payment
Financial services Carlyle NA IPO 1,000 10
Services Limited
Nexus India Capital
Paysense Services India Advisors, Jungle
Financial services PayU Corporate Strategic 293 NA
Private Limited Ventures &
Naspers
Manappuram Finance Baring India
Financial services NA Open market 101 5
Limited Private Equity
Aavas Financiers Limited Financial services Kedaara Capital NA Open market 93 5
Adani Ports and
Tara India Fund III
Dighi Port Limited Infrastructure Special Economic Strategic 89 NA
and others
Zone Limited
IPCA Labs Pharmaceuticals ChrysCapital 10 mutual funds Open market 78 4
Hinduja Leyland Finance Ashok Leyland
Financial services Everstone Buyback 55 NA
Limited Limited
Page 17 27 April 2020 EY analysis of VCCEdge dataFund raise Top fund raise in 1Q2020 Status Fund US$m Strategy Raised O2 Power (EQT, Temasek JV) 500 Renewable energy Raised CDPQ, Piramal JV 300 Private credit financing Raised Wipro Ventures 150 Early to mid-stage Raised Blume Ventures Fund III 102 Early stage/Start-ups Raised Inflexor Ventures 100 Early stage/Start-ups Page 18 27 April 2020 EY analysis of VCCEdge data
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Monthly trend analysis – March 2020
The better the question. The better the answer.
The better the world works.Key trends: monthly
Investments
► PE/VC investments in March 2020 (US$818 million) were the lowest in 36 months. PE/VC investments have recorded a precipitous
decline since the spread of the coronavirus came to light in January, which recorded investments worth US$2.5 billion. PE/VC
investments in March 2020 have declined by 88% compared to March 2019, which recorded investments worth US$7.1 billion. In terms of
volume, deals in March 2020 (70 deals) declined by 20% compared to March 2019 (87 deals).
► With most of the international funds going slow on deal making following the outbreak of the virus in East Asia, there was a sharp drop in
large deals (value greater than US$100 million) which has been the primary reason for the decline in PE/VC investments since January
2020. March 2020 had just one large deal of value US$112 million compared to five deals worth US$700 million in February 2020, five
deals worth US$1.4 billion in January 2020 and 13 large deals aggregating US$6.1 billion in March 2019.
► Due to the decline in large deal activity, investments in infrastructure and real estate sectors dropped considerably. In March 2020, these
sectors recorded investments worth just US$11 million compared to US$3.6 billion recorded in March 2019.
► Other prominent sectors too saw a steep decline in value invested. Financial services with US$210 million in investments (88% decline
compared to US$1.6 billion invested in March 2019) was the top sector in March 2020 followed by e-commerce that recorded US$180
million in investments (15% lower compared to US$212 million invested in March 2019).
► By deal type, except for start-up investments that showed some resilience, all other deal segments recorded a sharp decline in value.
Start-up deals recorded the highest value of investments in March 2020 at US$373 million across 44 deals, compared to 40 deals worth
US$224 million in March 2019, followed by growth capital investments worth US$187 million across 11 deals (US$1.9 billion across 27
deals in March 2019) and PIPE deals worth US$151 million across eight deals (US$1.6 billion across seven deals in March 2019). Buyouts
were the most impacted with just one small deal worth US$13 million recorded in March 2020 compared to eight deals worth US$3.2
billion in March 2019.
Page 20 27 April 2020 EY analysis of VCCEdge dataKey trends: monthly
Exits
► March 2020 recorded nine exits worth US$1.1 billion, 2.8 times the value of exits recorded in March 2019 (US$389 million) and 3.4
times higher than February 2020 (US$329 million). This was mainly due to the large US$1 billion partial exit by Carlyle from SBI Cards via
an offer for sale in the IPO. If this one deal were to be kept apart, exits in March would have been at a 41 month low.
► Strategic exits in March 2020 were worth US$104 million across five deals.
Fund raise
► March 2020 recorded total fund raises of US$85 million, a sharp decline from US$742 million raised in January 2020 and US$603 million
raised in February 2020.
Page 21 27 April 2020 EY analysis of VCCEdge dataPE/VC monthly headline trends: investments
US$m Total PE/VC investments #
9,000 100 100 120
99
93 89
87 82 87 83 100
79 74
73 70
6,000 80
8,338 60
7,070
3,000 5,288 40
4,267
3,314 2,856 3,124 3,408 3,242 20
2,387 2,502 1,737
- 818 0
Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Value (US$m) # of deals
US$m PE/VC investments: split across asset classes
8,000
6,000 4,358
2,691
1,120
4,000 995 803 26
259 297
764 98
10 1,450
1,076 1,323 1,415
2,000 3,683 4,142 556 898 127
3,424 3,055 114 625 78 232
687 682 2,700
1,859 1,714 1,525 8 3
1,094 1,119 1,207 1,378 807
-
Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
PE/VC investments (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)
Note: Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 22 27 April 2020 EY analysis of VCCEdge dataPE/VC monthly headline trends: exits
US$m Total PE/VC exits #
19
3,000 17 20
16
15 15
14
13 15
12
2,000 11
10
9 9 9
10
2,649
1,000
1,263 1,490 5
1,019 960 864 1,105
389 376 616 680 461 321
- 0
Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Value (US$m) # of exits
US$m PE/VC exits: split across asset classes
3,000
30
2,000
2,620 89
201 7
1,000
68 1,490 348
1,062 1,019 187 953 1,016
133 548 493 516 461
256 375 321
-
Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)
Note: Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 23 27 April 2020 EY analysis of VCCEdge dataPE/VC monthly headline trends: fund raise
US$m Fund raise #
4,000 18
15
3,000
12
2,000 7 9
6 6
5 5
4 4 4 4 4 6
1,000 3 3,233 3
1 3
1,096 971 1,136
682 545 654 403 172 742 603 85
- 40 0
Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Total funds raised (US$m) Total # of funds raised
Page 24 27 April 2020 EY analysis of VCCEdge dataPE/VC investments: US$807 million over 63 deals (excluding
infrastructure and real estate investments)
Top sectors by value US$m Top sectors by volume
Financial services 210 Financial services 12
E-commerce 180 Technology 11
Industrial Products 158 E-commerce 9
Logistics 119 Industrial Products 5
Healthcare 51 Healthcare 4
Others 89 Others 22
Deal value US$m (volume) Deal type US$m (volume)
362 (38)
293 (8)
222 (3)
187 (11)
121 (39) 151 (7)
112 (1)
94 (6)
59 (4)
13 (1)
US$100m Credit Buyout PIPE Start-up/ Growth
US$20m US$50m US$100m investment Early stage capital
Note: Deal value was not disclosed in 8 out of 63 deals in March 2020
PIPE: private investment in public equity
Page 25 27 April 2020 EY analysis of VCCEdge dataInfrastructure and real estate investments: US$11 million over
seven deals
By value US$m By volume
Real estate 8 Real estate 5
Infrastructure 3 Infrastructure 2
Deal value US$m (volume) Deal type US$m (volume)
11 (4 ) 11 (6)
NA (1)
US$100m Credit Buyout PIPE Start-up/ Growth
US$20m US$50m US$100m investment Early stage capital
PIPE: private investment in public equity
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 26 27 April 2020 EY analysis of VCCEdge dataTop PE/VC investments
Top PE/VC investments (excluding infrastructure and real estate) in March 2020
Company/Project PE Investors Sector Stage US$m Stake (%)
Temasek, Accel capital, Epiq
Capital Fund, Chiratae
CureFit Healthcare Private Limited E-commerce Early stage 112 NA
Ventures, Ascent Private
Equity Fund and others
TVS Supply Chain Solutions Private
Gateway Partners Logistics Growth capital 100 NA
Limited
Kotak Special Situations Industrial
Jindal Stainless Limited PIPE 68 5
Fund products
Industrial Credit
Suguna Group IFC 54 NA
products investment
Vivriti Capital Private Limited LGT Lightstone Aspada Financial services Early stage 50 NA
Page 27 27 April 2020 EY analysis of VCCEdge dataTop infrastructure and real estate investments
Top infrastructure and real estate investments in March 2020
Company/Project PE Investors Sector Stage US$m Stake (%)
Multi-Living Technologies Private
Lodha Ventures Real estate Early stage 6 NA
Limited
Zunroof Tech Private Limited Godrej Family Office Infrastructure Early stage 3 NA
Strata Property Management SAIF Partners, Mayfield
Real Estate Early stage 2 NA
Private Limited Fund and others
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 28 27 April 2020 EY analysis of VCCEdge dataExits: US$1105 million across nine deals in March 2020
Exits in March 2020
Deal value US$m (volume) Deal type US$m (volume)
Financial services 1,000 (2) 1,000 (1)
Infrastructure 89 (1)
Industrial products 9 (1)
E-commercer 7 (1) 104 (5)
1 (1) NA (2)
Food and agri 1 (1) IPO Buyback Strategic Secondary Open
market
Page 29 27 April 2020 EY analysis of VCCEdge dataTop exits
Top exits in March 2020
Company/Project Sector Sellers Buyer Exit type US$m Stake (%)
SBI Cards and Payment Carlyle Asia
Financial services NA IPO 1,000 10
Services Limited Partners V
Balaji Infra Adani Ports and
Dighi Port Limited Infrastructure Projects, Tara India Special Economic Strategic 89 NA
Fund III Zone Limited
India Advantage
Cochin Shipyard
Tebma Shipyards Limited Industrial products Fund Series II and Strategic 9 NA
Limited
others
Page 30 27 April 2020 EY analysis of VCCEdge dataFund raise Top fund raises/announcements in March 2020 Status Fund US$m Strategy Raised Binance Group 50 Blockchain Raised Northern Arc 23 Venture debt Raised Unicorn India Ventures 12 Early stage/ Start-ups Announced SBICAP Ventures, Carlyle JV 1,500 Distressed assets Announced Lightspeed 300 Early stage/ Start-ups Page 31 27 April 2020 EY analysis of VCCEdge data
About EY Private Equity Services
About EY’s Private Equity Services Practice
EY has been working with the private equity industry for more than 25 years, with approximately
25,000 seasoned professionals worldwide dedicated to the industry and its business issues. EY
serves 74% of the top 300 PE firms included in the Global PEI 300 firms list. Private equity firms,
portfolio companies and investment funds face complex challenges. They are under pressure to
deploy capital amid geopolitical uncertainty, increased competition, higher valuations and rising
stakeholder expectations. Successful deals depend on the ability to move faster, drive rapid and
strategic growth and create greater value throughout the transaction life cycle. EY taps its global
network to help source deal opportunities and combines deep sector insights with the proven,
innovative strategies that have guided the world’s fastest growing companies.
In India, EY is among the leading providers of advisory, tax, transactions and assurance services.
The organization is also the number one professional services brand* in India, which is a
testimony to our relentless commitment to deliver exceptional client service and create a better
working world. EY has 16 offices spread across 10 cities in India. Worldwide, our 247,570 people
across 150+ countries and 700+ cities are united by our shared values and their unwavering
commitment to quality.
► EY’s India Private Equity Services Practice has been among the top advisors for private equity
deals over the past ten years. EY has been awarded the “Most Active Transaction Advisor”
award by Venture Intelligence for 2009-2013 and also the “Investment Bank of the Year,
Private Equity” award by VC Circle in 2012 and 2017. EY was also the top PE advisor in the
Venture Intelligence league table in 2018.
► EY’s India Private Equity Services Practice provides value to PE funds and their portfolio
companies through its deep sector and service expertise. EY India is organized around key
industry verticals in a matrix structure that enables us to offer an unparalleled blend of
industry expertise and functional skills. We actively track about 15 sectors with sector leads
driving our penetration in each of those sectors.
Page 33 27 April 2020 EY analysis of VCCEdge dataEY services for Private Equity
We offer an array of services to Private Equity funds and their portfolio/investee companies through our various service lines.
Partners
Fund assurance and management
(Personal tax)
(Fund and fund management company audit,
portfolio valuation, controls and process
Fund Raising
design and review, tax and regulatory
(Marketing collateral, fund structuring,
compliance)
audit of fund performance)
Buy and sell side advisory Funds
(M&A, capital markets support, tax Buyside support
structuring, regulatory compliance, SPA (Due diligence – financial, tax, business and
advisory, integrated sell side advisory – Transaction commercial, forensics and background, HR,
building equity story, vendor due diligence Advisory IT and environmental, modeling and
(VDD), structuring marketing) valuations)
Services
Exit readiness Portfolio Services Transition
(IPO, GAAP conversion, vendor due (PMO, 100-days plan, transaction Integration,
diligence, value creation, investor GAAP conversion, governance, controls
relations, exit preparation, sale Assurance assessment, MIS development, process
mandates, exit structuring) (Statutory audit, tax compliance, risk management, advisory, standard operating procedures, CFO
corporate governance advisory, internal audits and services and compliance manager)
fraud reviews)
Distressed Tax and Legal Growth
(Debt syndication, bank intermediation, (Tax advisory, tax accounting, ESOP advisory, (Strategic options, technology security, IT
restructuring, working capital global mobility, transfer pricing and operating strategy, operational improvement, SCM,
management, cost reduction, model effectiveness, tax policy and litigation, market entry options and working capital
insolvency and bankruptcy advisory) regulatory compliance) management)
Page 34 27 April 2020 EY analysis of VCCEdge dataContacts
Ernst & Young LLP
EY | Assurance | Tax | Transactions | Advisory Private Equity Services
Vivek Soni Rajan Satija
About EY Partner and National Leader Director
EY is a global leader in assurance, tax, transaction and E: Vivek.Soni@in.ey.com E: Rajan.Satija@in.ey.com
advisory services. The insights and quality services we Narendra Rohira Nachiket Deo
deliver help build trust and confidence in the capital Partner, Transaction Tax Partner, Transaction Tax
markets and in economies the world over. We develop E: Narendra.Rohira@in.ey.com E: Nachiket.Deo@in.ey.com
outstanding leaders who team to deliver on our
promises to all of our stakeholders. In so doing, we Subramaniam Krishnan Tejas Desai
play a critical role in building a better working world Partner, Tax & Regulatory Services Partner, Tax & Regulatory Services
E: Subramaniam.Krishnan@in.ey.com Tejas.Desai@in.ey.com
for our people, for our clients and for our
communities.
Transaction Advisory Services (TAS)
EY refers to the global organization, and may refer to Amit Khandelwal Ajay Arora
one or more, of the member firms of Ernst & Young Managing Partner Partner and National Leader
Global Limited, each of which is a separate legal TAS Investment Banking Advisory
entity. Ernst & Young Global Limited, a UK company E: Amit.Khandelwal@in.ey.com E: Ajay.Arora@in.ey.com
limited by guarantee, does not provide services to
clients. For more information about our organization, Kuldeep Tikkha Sailesh Rao
Partner and National Leader Partner and National Leader
please visit ey.com.
Transaction Diligence Corporate Finance Strategy
E: Kuldeep.Tikkha@in.ey.com E: Sailesh.Rao@in.ey.com
Ernst & Young LLP is one of the Indian client serving member firms of EYGM
Limited. For more information about our organization, please visit
www.ey.com/in. PE Value Creation and Operational Transaction Services
Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Naveen Tiwari
Liability Partnership Act, 2008 in India, having its registered office at 22 Camac
Street, 3rd Floor, Block C, Kolkata – 700016
Partner and National Leader
Operational Transaction Services
© 2020 Ernst & Young LLP. Published in India. E: Naveen1.Tiwari@in.ey.com
All Rights Reserved.
ED None Research and Insights
EYIN2004-052
This publication contains information in summary form and is therefore intended
Allwyn D’Souza
for general guidance only. It is not intended to be a substitute for detailed Senior Manager
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Pooja Bhalla Mathur
Vice President
E: Pooja.Mathur@in.ey.comAbout IVCA
IVCA Contacts About IVCA The Indian Private Equity & Venture Capital Rajat Tandon Aakriti Bamniyal Association (IVCA), is the apex body promoting the President, IVCA Vice President, IVCA Alternative Investment Funds (AIFs) in India and E: Rajat.Tandon@ivca.in E: aakriti@ivca.in promotes stable, long-term capital flow (Private Equity (PE), Venture Capital (VC) and Angel Capital) in India. With leading VC/ PE firms, institutional investors, banks, corporate advisers, accountants, lawyers and other service providers as members, it serves as a powerful platform for all stakeholders to interact with each other. Being the face of the Industry, it helps establish high standards of governance, ethics, business conduct and professional competence. With a prime motive to support the ecosystem, it facilitates contact with policy makers, research institutions, universities, trade associations and other relevant organizations. Thus support entrepreneurial activity, innovation and job creation.
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