In today's frenetic world, how does private equity set the pace? - June 2021
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In today’s frenetic world, how does private equity set the pace? Learn how EY helps private equity professionals thrive in the Transformative Age The IVCA-EY monthly PE/VC roundup – 1H2021 The better the question. The better the answer. The better the world works.
Our thoughts “ Indian . PE/VC investment activity grew at a record setting pace throughout 1H21 and the deal pipeline indicates that this pace is only going to intensify as 2021 progresses. Both 1H21 and 2Q21 notched up life-time highs for pure-play PE/VC investments at US$21.9 billion and US$14.1 billion respectively. While, deal activity has been hectic, activity in both large deals (US$100m+) as well as mid-market deals (US$20-100 m) and growth deals continue to be the mainstay, the material increase in buyout and start-up deals are the growth drivers when we compare PE asset class data to the previous two six-month periods. In 1H21, PE/VC interest has been overweight on technology, e-commerce, financial services, pharmaceuticals, education and media and entertainment, sectors which have either gained on account of COVID or have demonstrated resilience to or a quick bounce back from the pandemic and its aftereffects. Conversely, PE/VC investments in infrastructure and real estate asset classes and the retail and consumer products sector have shown a material decline compared to the previous six-month period. PE/VC exit activity is also on track to notch up a record setting year. With ~U$22.5 billion of exits in the first six months and several large deals in pipeline, 2021 is expected to materially eclipse 2018’s high of US$27 billion. Large, multi-billion dollar exits to strategic buyers is expected to remain the main driver, while exits via secondary deals, open market sale of listed positions as well as IPOs are also expected to remain strong. A positive response by the equity markets to the Zomato IPO and the soon to follow IPOs by other VC funded new age unicorns is expected to catalyze even more investment and exit activity in the Indian start-up ecosystem. Although fund raising by Indian focused funds dipped materially when compared to the previous six-month period, we are projecting a strong bounce back as the forecasted robust exits fuel Limited Partner (LP) returns and sentiments. Downside risks to watch for include, a possible pandemic resurgence, inflation and the Feds response to it and a potential spike in commodity prices, especially oil. Page 2 19 July 2021 EY analysis of VCCEdge data
How can you cut cost and still accelerate growth? Find out how EY’s insights can help companies grow from cash poor to cash rich Half-yearly trend analysis – 1H2021 The better the question. The better the answer. The better the world works.
Key trends: half-yearly
Investments
► On a half-yearly basis, PE/VC investments in 1H21 recorded a 45% increase y-o-y, but declined by 9% sequentially (US$26.9
billion in 1H21 vs. US$18.5 billion in 1H20 and US$29.1 billion in 2H20). In terms of number of deals, 1H21 recorded an
increase of 18% compared to 1H20 and 7% compared to 2H20 (518 deals in 1H21 vs. 440 deals in 1H20 and 483 deals in
2H20). The y-o-y increase in the value of PE/VC investments in 1H21 appears impressive primarily on account of a lower base
effect as 1H20 was significantly affected by the uncertainties that came along with the onset of the COVID-19 pandemic and
the strict nationwide lockdown that ensued thereafter.
► Pure play PE/VC investments (excluding real estate and infrastructure sectors) recorded its highest ever value of investments
in 1H21, which is 32% higher compared to 1H20 and 5% higher than 2H20 (US$21.9 billion in 1H21 vs. US$16.5 billion in
1H20 vs. US$20.9 billion in 2H20).
► The improvement in 1H21 over 1H20 was mainly on account of higher number of large deals. 1H21 recorded 64 large deals
aggregating to US$19.1 billion (compared to 30 large deals aggregating to US$13.6 billion in 1H20), However, the value of
large deals in 1H21 were 20% lower than 2H20 that had recorded 55 large deals aggregating to US$24.1 billion. The largest
deals in 1H21 included Blackstone along with ADIA, UC Investments and GIC acquiring a majority stake (~75%) in Mphasis for
around US$2.8 billion. The deal involves an older fund of Blackstone (Blackstone, Blackstone Capital Partners VI) selling its
~55% stake in Mphasis to Blackstone Capital Partners Asia and Blackstone Capital Partners VIII while also announcing an open
offer to acquire additional 26% stake, taking the combined planned purchase consideration to around US$2.8 billion followed
by a group of investors including QIA, GIC, Goldman Sachs, Naspers and others investing ~US$800 million in Swiggy.
Page 4 19 July 2021 EY analysis of VCCEdge data
Key trends: half-yearly
Investments
► Growth deals were the highest with US$11 billion invested across 138 deals (US$13.1 billion across 95 deals in 1H20 and
US$12.3 billion across 93 deals in 2H20), followed by buyouts, which was the most impacted deal strategy post the onset of
the COVID-19 pandemic in 2020. Buyouts recorded a nine-fold y-o-y increase to US$7.9 billion across 28 deals (US$885
million across 15 deals in 1H20 and US$10.9 billion across 28 deals in 2H20).
► Start-up investments more than doubled to US$5.9 billion across 280 deals in 1H21 on a y-o-y basis (US$2.2 billion across
261 deals in 1H20 and US$2.5 billion across 295 deals in 2H20). PIPE investments recorded US$1.2 billion across 62 deals in
1H21 (US$990 million across 30 deals in 1H20 and US$2.1 billion across 32 deals in 2H20). Credit investments recorded
US$836 million in 1H21 compared to US$1.3 billion in 1H20 and US$1.2 billion in 2H20.
► From a sector perspective, technology was at the top (US$5.2 billion across 67 deals), highest ever value of investments in
the sector, surpassing the previous high recorded in 2019 (full year) of US$4.3 billion by 22% and is 59% higher than
investments recorded in 2020 (full year). E-commerce was second in line with US$4.8 billion invested across 83 deals, 72%
higher than US$2.8 billion across 125 deals in 2020 (full year) and is almost at par with the all time high of US$4.9 billion
recorded by the sector in 2017 (full year) followed by financial services sector (US$3.6 billion across 90 deals, 81% y-o-y
increase). Media and entertainment is another sector that has recorded all-time high numbers of US$1.3 billion across 25
deals, 56% higher than previous all-time high of US$809 million recorded in 2020 (full year).
Page 5 19 July 2021 EY analysis of VCCEdge data
Key trends: half-yearly
Exits
► On a year-on-year (y-o-y) basis, exits recorded more than a seven fold increase in terms of value in 1H21 compared to 1H20
and 2H20 (US$22.5 billion vs. US$3 billion in 1H20 and US$3.1 billion in 2H20) and more than 3.7 times the value recorded
in entire 2020. This is also the highest half-yearly value of exits and second highest on an annual basis. The number of exits in
1H21(118 exits) were 82% higher compared to 1H20 (65 exits) and 37% higher compared to 2H20 (86 deals).
► Exits via strategic sale were the highest with US$12.7 billion recorded across 29 deals, accounting for 57% of all exits in 1H21
which is mainly on account of the large GlobalLogic-Hitachi deal worth US$8.6 billion. Next in line were exits via secondary
sale (sale to other PE funds) at US$4.5 billion (31 deals) that recorded the highest ever half-yearly value and four times the
value recorded in entire 2020. Open market exits recorded 38 deals worth US$2.9 billion. PE-backed IPOs too recorded
highest ever half-yearly value of exits in 1H21 and second highest in terms of number of IPOs, that saw PE funds garner
US$1.6 billion in sale proceeds across13 IPOs.
► From a sector perspective, technology sector recorded the highest value of exits in 1H21 (US$11.8 billion across 11 deals)
which is more than the exits recorded by the sector in the preceding eight years combined. This is mainly on account of
Hitachi’s buyout of the stake held by CPPIB and Partners Group in GlobalLogic for US$8.6 billion. Financial services was the
next big sector with 22 exits worth US$2.5 billion.
► Apart from GlobalLogic, the second largest exit too was from the technology sector where an older fund of Blackstone
(Blackstone, Blackstone Capital Partners VI) sold its ~55% stake in Mphasis to Blackstone Capital Partners Asia and Blackstone
Capital Partners VIII fund for ~US$2 billion.
► 1H21 has recorded four US$1 billion plus exits which is same as that recorded in the previous three years combined. Large
exits (value greater than US$100m) accounted for US$20.8 billion in value across 24 exits in 1H21 compared to 12 such exits
worth US$3.8 billion in 2020 (full year), 32 exits worth US$8.7 billion in 2019 (full year) and 32 exits worth US$25 billion in
2018 (full year).
Page 6 19 July 2021 EY analysis of VCCEdge data
Key trends: half-yearly
Fundraise
► 1H21 recorded US$2.8 billion in fundraises, 72% higher compared to 1H20 (US$1.6 billion) and 58% lower compared to 2H20
(US$6.6 billion). The largest fundraise in 1H21 saw Kotak Real Estate fund raise US$380 million for its 11th fund for
investments across both early and late-stage real estate projects in the residential, commercial, retail, warehousing and
hospitality sectors.
Page 7 19 July 2021 EY analysis of VCCEdge data
PE/VC half-yearly headline trends: investments
US$m Total PE/VC investments #
30,000 531 518 600
499
25,000 440 483 500
376 391
20,000 302 400
294
15,000 18,511 300
26,938 29,067 26,916
10,000 19,453 20,687 200
15,901 17,960
5,000 10,275 9,567 6,361 100
- 1,371 -
1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 1H2020 2H2020 1H2021
Value (US$m) # of deals Investment in Jio Platforms Investment in Reliance Retail
US$m PE/VC investments split across asset classes
30,000
3,307
25,000 2,005
8,348 4,858 3,046
20,000 1,113
3,348 5,496 1,615
1,333 3,276 390
15,000 2,315 2,312
2,868
3,682
1,560 21,865
10,000 20,903
1,373 14,534 15,314 16,505
13,791 12,323
5,000 10,886
7,342
-
1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 1H2020 2H2020 1H2021
PE/VC investment (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 8 19 July 2021 EY analysis of VCCEdge data
PE/VC half-yearly headline trends: exits
US$m Total PE/VC exits #
131 129
140
20,000 104 118 120
80 86 100
15,000 77
72 65 80
22,453
10,000 60
20,430
40
5,000 8,339 6,612 7,271 20
4,714 3,850 2,955 3,053
- -
1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 1H2020 2H2020 1H2021
Value (US$m) # of exits
US$m PE/VC exits split across asset classes
30,000
25,000
9 2,551
20,000 367 591
15,000
10,000 435 20,053 19,311
511 1,079 7
56 632
5,000 295 344 236 2
7,392 293 6,633 89
4,363 5,189 302 653
3,321 2,565 2,397
-
1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 1H2020 2H2020 1H2021
Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 9 19 July 2021 EY analysis of VCCEdge data
PE/VC half-yearly headline trends: fundraise
US$m Fundraise #
7,000 35 40
6,000 28 29 35
27
5,000 24 23 24 30
20 25
4,000 18
6,638 20
3,000 6,143
5,087 5,543 15
2,000 3,768 10
3,005 2,761
1,000 2,006 1,601 5
- -
1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 1H2020 2H2020 1H2021
Total funds raised (US$m) Total # of funds raised
Page 10 19 July 2021 EY analysis of VCCEdge dataInvestments (excluding infrastructure and real estate)
Total investments (US$m) # of deals
1H2021 21,865 1H2021 462
2H2020 20,903 2H2020 453
1H2020 16,505 1H2020 410
Deal type US$m Deal type #
564 35
Credit investment 1,118 Credit investment 32
513 33
5,456 14
Buyout 4,213 Buyout 15
407 8
832 25
PIPE* 1,866 PIPE* 30
925 28
5,712 275
Start-up/Early stage 2,472 Start-up/Early stage 292
2,208 251
9,301 113
Expansion/Growth 11,234 Expansion/Growth 84
12,453 90
Deal size US$m Deal size #
15,615 49
>US$100m 16,481 >US$100m 43
12,181 24
2,401 31
US$50m-US$100m 2,125 US$50m-US$100m 27
1,616 23
2,354 70
US$20m-US$50m 1,110 US$20m-US$50m 36
1,450 43
737 51
US$10m-US$20m 436 US$10m-US$20m 30
566 37
758 209Investments: infrastructure
Total investments (US$m) # of deals
1H2021 2,005 1H2021 23
2H2020 3,307 2H2020 12
1H2020 1,615 1H2020 17
Deal type US$m Deal type #
84 3
Credit investment 15 Credit investment 1
832 6
1,202 6
Buyout 2,345 Buyout 7
331 5
286 4
PIPE* PIPE*
- 1
72 2
Start-up/Early stage 19 Start-up/Early stage 1
7 2
361 8
Expansion/Growth 928 Expansion/Growth 3
446 3
Deal size US$m Deal size #
1,510 7
>US$100m 3,254 >US$100m 7
1,435 6
338 4
US$50m-US$100m US$50m-US$100m
153 5
US$20m-US$50m US$20m-US$50m
163 4
US$10m-US$20m 52 US$10m-US$20m 3
4 3Investments: real estate
Total investments (US$m) # of deals
1H2021 3,046 1H2021 33
2H2020 4,858 2H2020 18
1H2020 390 1H2020 13
Deal type US$m Deal type #
187 4
Credit investment 81 Credit investment 2
1,267 8
Buyout 4,378 Buyout 6
147 2
110 1
PIPE* 210 PIPE* 2
65 1
122 3
Start-up/Early stage 8 Start-up/Early stage 2
20 8
1,359 17
Expansion/Growth 179 Expansion/Growth 6
158 2
Deal size US$m Deal size #
1,971 8
>US$100m 4,385 >US$100m 5
782 11
US$50m-US$100m 431 US$50m-US$100m 6
370 5
231 8
US$20m-US$50m US$20m-US$50m
40 3
US$10m-US$20m 27 US$10m-US$20m 2
21 3Investments: sector-wise
Top sectors by value (US$m) Top sectors by # of deals
5,204 90
Technology 2,752 Financial services 71
520 75
4,783 83
E-commerce 1,918 E-commerce 65
859 60
3,617 67
Financial services 2,842 Technology 79
1,997 60
3,046 44
Real estate 4,858 Education 42
390 29
2,005 33
Infrastructure 3,307 Real estate 18
1,615 13
1,570 32
Pharmaceuticals 1,889 Retail and consumer products 28
1,092 18
1,401 29
Education 1,405 Healthcare 23
739 25
1,260 25
Media and entertainment 733 Media and entertainment 32
76 28
871 23
Retail and consumer products 6,591 Infrastructure 12
71 17
813 20
Healthcare 252 Pharmaceuticals 19
414 17
2,345 72
Others 2,521 Others 94
10,738 98
1H2021 2H2020 1H2020
* In 1H2020, others includes US$9 billion invested in Telecom sector, mainly in Jio Platforms
Page 14 19 July 2021 EY analysis of VCCEdge dataTop PE/VC investments
Top PE/VC investments excluding infrastructure and real estate in 1H2021
Company PE investors Sector Stage US$m Stake (%)
Mphasis Limited Blackstone, ADIA, UC Invest, GIC Technology Buyout ~2,800 ~ 75
Bundl Technologies Private Limited Accel, Falcon Edge, Amansa, Carmignac, E-commerce
Growth capital 800 16
(Swiggy) QIA, GIC and others
Infogain Corporation Apax Partners Technology Buyout ~800 100
Retail and consumer
Vini Cosmetics Private Limited KKR, Westbridge Capital Buyout 648 56
products
India Quotient, Lightspeed, Tiger Global
Mohalla Tech Private Limited (Sharechat) Media and entertainment Start-up 502 NA
and others
MC Global Edtech, B Capital, Baron Global,
Think and Learn Private Limited (Byju’s) Education Growth capital 460 NA
XN Exponent and others
UBS, Blackstone, ADQ, Phoenix Rising, IIFL
Think and Learn Private Limited (Byju’s) Education Growth capital 400 2.4
and others
Sporta Technologies Private Limited Steadview Capital, Tiger Global, TPG,
Media and entertainment Growth capital 400 NA
(Dream 11) ChrysCapital, Falcon Edge and others
Zydus Animal Health and Investments Pharmaceuticals
Multiples, CPPIB Buyout 400 100
Limited
Altico Capital India Limited Ares Management Financial services Buyout 380 100
API Holdings Private Limited (Pharmeasy) TPG, Temasek, Naspers E-commerce Start-up 350 7
Aragen Life Sciences Private Limited Goldman Sachs Pharmaceuticals Growth capital 333 33
YV Capital, D1 Capital, Steadview Capital,
Zomato Limited E-commerce Growth capital 319 NA
MVP Fund
BrainBees Solutions Private Limited
ChrysCapital, TPG, PremjiInvest E-commerce Growth capital 313 NA
(FirstCry)
TPG, Temasek, B Capital, Kotak PE and
API Holdings Private Limited (Pharmeasy) E-commerce Start-up 300 NA
others
Page 15 19 July 2021 EY analysis of VCCEdge dataTop PE/VC investments
Top infrastructure and real estate investments in 1H2021
Company PE investors Sector Stage US$m Stake (%)
Embassy Industrial Parks Private Limited Blackstone Real estate Buyout 715 100
Engie SA-Indian Solar Energy Assets Edelweiss and Sekura Energy Infrastructure Buyout 550 75
RMZ Corp, construction projects JV CPPIB Real estate Growth capital 340 NA
2 Solar Projects of Fortum India Actis Infrastructure Buyout 332 100
Phoenix Mills Limited, Investment Platform GIC Real estate Growth capital 208 36
Gardencity Realty, 1.65 M sq ft at
Ascendas Property Fund Real estate Buyout 197 100
Bengaluru IT park
Phoenix Group’s 2 IT-SEZ projects in
Varde Partners Real estate Credit investment 156 NA
Hyderabad
Sterlite Power Transmission Limited, 5
AMP Capital Investors Infrastructure Buyout 150 50
energy transmission projects
Phoenix's IT-SEZ,1.1 M sq. ft GIC Real estate Growth capital 143 NA
IndInfravit Trust CPPIB Infrastructure Growth capital 135 16
The Norwegian Investment Fund for
Fourth Partner Energy Private Limited Infrastructure Growth capital 125 NA
Developing Countries, The Rise Fund
Godrej Properties Limited GIC Real estate PIPE 110 2
Adani Ports and Special Economic Zone
Warburg Pincus Infrastructure PIPE 109 0.5
Limited
PowerGrid InvIT CPPIB Infrastructure PIPE 108 NA
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 16 19 July 2021 EY analysis of VCCEdge dataExits: half-yearly analysis
Total exits (US$m) # of deals
1H2021 22,453 1H2021 118
2H2020 3,053 2H2020 86
1H2020 2,955 1H2020 65
Exit type US$m Exit type #
2,943 38
Open market 1,066 Open market 37
1,355 30
4,545 31
Secondary 868 Secondary 11
45 9
12,729 29
Strategic 627 Strategic 25
399 19
632 7
Buyback 340 Buyback 6
64 5
1,605 13
IPO 152 IPO 7
1,093 2
Top sectors US$m Top sectors #
11,812 22
Technology 710 Financial services 14
137 26
2,508 14
Financial services 198 E-commerce 8
1,978 1
2,551 12
Infrastructure 2 Media and entertainment 5
89 4
1,405 11
E-commerce 101 Technology 8
7 2
779 10
Automotive 10 Retail and consumer… 4
- 3
680 5
Retail and consumer products 359 Infrastructure 1
- 3
2,718 44
Others 1,673 Others 46
744 26
Page 17 19 July 2021 EY analysis of VCCEdge dataTop exits
Top exits in 1H2021
Company Sector Sellers Buyer Exit type US$m Stake (%)
GlobalLogic Incorporated Technology CPPIB, Partners Group Hitachi Strategic ~8,640 90
MphasiS Limited Technology Blackstone Blackstone’s new fund Secondary ~2,000 55
Adani Green Energy
SB Energy Holding Power and utilities Softbank Strategic ~1,760 80
Limited
BigBasket E-Commerce Alibaba, IFC and Abraaj TATA Group Strategic 1,000 50
Adani Ports and Special
Gangavaram Port Limited Infrastructure Warburg Pincus Strategic 761 32
Economic Zone Limited
Sona BLW Precision Forgings
Automotive Blackstone NA IPO 719 33
Limited
SBI Cards and Payment Services
Financial Services Carlyle NA Open market 649 5
Limited
SBI Life Insurance Company
Financial Services Carlyle NA Open market 531 4
Limited
Infogain Corporation Technology ChrysCapital Apax Secondary 500 70
Embassy Industrial Parks Private Warburg Pincus, Embassy
Real Estate Blackstone Secondary 500 70
Limited Property Developments
Media &
Bharti Telemedia Limited Warburg Pincus Bharti Airtel Limited Buyback 430 20
Entertainment
Aakash Educational Services Think and Learn Private
Education Blackstone Strategic 375 38
Limited Limited (Byju’s)
Alipay, Sunlight Fund, Nexus, YV Capital, D1 Capital,
Zomato Limited E-Commerce Secondary 319 NA
Sequoia, Blume and others Steadview, MVP Fund
TaskUs Incorporated Technology Blackstone NA IPO 300 12
Page 18 19 July 2021 EY analysis of VCCEdge dataFundraise Top fundraise in 1H2021 Status Fund US$m Strategy Raised Kotak Real Estate Fund XI 380 Early and late-stage real estate projects (debt funding) Raised Godrej Fund Management - Office Platform 250 Office buildings Raised TVS Shriram Growth Fund 3 212 Sector agnostic Raised Sequoia Capital Seed Fund - II 195 Early stage start-ups Raised Alteria Capital 179 Venture debt Raised Tata Capital Growth Fund II 168 Strategic services, urbanisation and discrete manufacturing Raised Trifecta Capital - Second Fund 140 Venture debt – start-ups Raised Fireside Ventures - Fund II 118 Early stage – consumer Announced Edelweiss Financial Services 1,500 Distressed assets Announced Actis Energy 5 LP fund 850 Solar and wind power parks Announced Kotak Investment Advisors 800 ESG compliant infrastructure Announced Edelweiss Pre IPO Fund 700 Pre IPO and late stage companies Announced Nexus Venture Partners Sixth Fund 660 Early-stage start-ups - Sector agnostics Page 19 19 July 2021 EY analysis of VCCEdge data
Spotlight: the growing importance of ESG in investing
Investors are entering a new age of ESG maturity
Traditional Investor ESG Risk Mitigator ESG Opportunity Seeker ESG Investor
Both
Financial first, environmental and social (E&S) E&S Impact
Value Created Financial only financial, E&S
considered prioritized
impacts
Look for assets in sectors
Approach to ESG Focus on screening for non- Look for assets only in sectors
Passive with positive ESG impact
screening for assets compliant assets/ sectors with positive ESG impact
(along-side others)
No specific investment Thematic
Investment Approach Dedicated ESG Impact Fund
fund Fund
Involvement in ESG Push for Actively involved such as
None Focus on risks and divest from certain sectors
during ownership Impact capacity building
ESG Impact Limited, usually includes some Track some Specific performance indicators to measure
None
Measurement KPIs focused on risks ESG KPIs ESG impact in addition to financial returns
Financial considerations Social/ Environmental
considerations
Page 21 19 July 2021 EY analysis of VCCEdge dataESG Imperatives for General Partners (GPs)
Demand from LPs are increasingly becoming ESG-savvy. According to a recent Intertrust
Limited Partners survey of 150 PE fund managers, an overwhelming majority (88 percent)
(LPs) said they plan to increase their focus on ESG
Several meta-studies, including one conducted by Deutsche Asset
Management and the University of Hamburg, show a strong positive
Evidence of
correlation between ESG strategies and financial performance, with the
financial relevance
strongest positive correlations identified for businesses operating in
developing markets.
Regulatory activity is increasing globally, including the EU’s Sustainable
Regulation of ESG Finance Disclosure Regulation (SFDR) and EU taxonomy for sustainable
disclosure activities. Disclosure are required on how ESG risks are integrated into
investment decisions and their impact on returns.
A systematic approach of integrating ESG into business operations and
Opportunity for
processes can help safeguard a company’s long-term success as it takes
mitigating risk and
steps to mitigate these risks. Addressing ESG concerns enhances
value creation
operational and performance effectiveness creating long term value.
New study reveals rise of ESG among private equity GPs - yet obstacles remain - Intertrust Group
Page 22 19 July 2021 EY analysis of VCCEdge dataSome of the Global PE majors already have ESG at the heart of
their operations
Has an Has Principles for American Investment
articulated annual Responsible Council’s Guidelines
ESG public Investing (PRI) for Responsible Dedicated impact fund
PE firm framework report signatory Investment or pool
Advent International Corp. X
Apollo Impact Investing
Apollo Global Management Inc. X X X
Fund
Ares Management Corp. X X1 X
The Blackstone Group Inc. X X X
Carlyle Renewable &
The Carlyle Group X X X
Sustainable Energy Fund
EQT Partners AB X X X
KKR & Co. Inc. X X X X KKR Global Impact Fund
TPG Capital Management LP X X X X The Rise Fund I and II
Vision Fund X
Warburg Pincus LLC X X X X
1Beginning in 2021, Ares will publish an annual Corporate Responsibility Report
Source: EY Research
Page 23 19 July 2021 EY analysis of VCCEdge dataMaterial aspects for investors
Environmental – sector specific (illustrative)
Environmental aspects can vary depending on the sector in which a company is operating. Climate change and
emissions caused due to operations, energy efficiency, optimum utilization of raw materials and water resources,
waste disposal, and biodiversity protection are few of the key indicators that determine a company's approach
towards environment conservation.
Sector Focus Area Sector Focus Area
► Emissions from Transmission
► Toxic Emissions and Waste
► and Distribution
Pharmaceuticals ► Climate Strategy Gas Utilities CO2
► Biodiversity
► Operational Eco-Efficiency
► Toxic Emissions and Waste
► Sustainable Forestry Practices
Transportation
► Fuel Efficiency ► Biodiversity
and Paper and Forest
► Climate Strategy ► Operational Eco Efficiency
Transportation Products
► Biodiversity ► Water Related Risks
Industry
► Product Stewardship
► Packaging Material and Waste
► Mineral Waste Management
► Raw Material Sourcing
► Climate Strategy
FMCG ► Product Carbon Footprint Metals and Mining
► Operational Eco-Efficiency
► Water Stress
► Water Related Risks
► Toxic Emissions and Waste
Source: S&P 2021 Yearbook, MSCI Materiality Map
Page 24 19 July 2021 EY analysis of VCCEdge dataMaterial aspects for investors
Social and governance – sector agnostic (illustrative)
Social aspects considers how a company manages its Governance aspects considers set of rules or
relationship with internal social factors (such as principles defining rights, responsibilities and
human capital development, human rights and living expectations between different stakeholders in the
wage) and external social factors governance of corporations.
Social Material Issues Governance Material Issues
► Financial Inclusion
► Human Capital development
► Talent Attraction and ► Codes of Business Conduct
Retention ► Corporate Governance
► Privacy and Data Security ► Customer Relationship
► Access to finance ► Management
► Consumer Financial ► Risk & Crisis Management
Protection ► Sustainable Finance
► Insuring health and
demographic risk
Source: S&P 2021 Yearbook, MSCI Materiality Map
Page 25 19 July 2021 EY analysis of VCCEdge dataInvestor preferences (illustrative)
Investors prefer firms that demonstrate ESG as beyond a compliance
Investors are extensively using exclusionary
measure and actually integrate it in their ethos and create long-term
value for their stakeholders. screening as a method to sustainable investing.
Exclusionary screening is often used when investors want to
Select Examples remove investable options basis on their values or standards or
reputation.
PE Firm ESG focus
► Firms incorporating ESG and CSR initiatives into its Common exclusionary / negative screens include:
value-creation plans, with the specific focus on
customer loyalty, human capital, communities,
CVC Capital
environment and governance.
Partners
► CVC undertakes annual assessments of its portfolio
companies to demonstrate how ESG maturity has
improved under its ownership.
► Created Global Impact Fund in 2018 to invest in Pornography Weapons Nuclear Energy Tobacco
leading companies where financial performance
and positive societal impact are intrinsically
KKR aligned.
► Recognizes portfolio companies that provide
innovative, environmentally beneficial solutions
through Eco-Innovation Awards Gambling Alcohol Animal Testing
► Launched two ESG-linked subscription credit
facilities in 2020 worth €5 billion. Companies
EQT
receive better financing terms if they perform well
against a set of ESG indicators.
keynote-interview-esg-in-value-creation.pdf (cvc.com)
KKR Supplementary ESG Disclosures September 2020 (kkresg.com)
EQT Launches Largest Ever ESG-linked Fund Bridge Facility - ESG Today
Page 26 19 July 2021 EY analysis of VCCEdge dataESG Due Diligence Checklist
Illustrative
S.No General E&S Management S.No Anti-corruption management due diligence (DD)
1 E&S Policy 1 Pre Deal Screening
2 Identification of Risks and Opportunities 2 Risk Profile
3 Management Programs 3 Written Procedures
4 Development of internal capacity and accountability mechanisms
4 Responsible Officer
5 Emergency Preparedness and Response
5 Associates – group companies
Stakeholder engagement program (SEP) and grievance
6 6 Suppliers and purchasers
mechanism
7 Monitoring and review 7 Communication and training
Labour and Working Conditions 8 Employment Rights
Human resources (HR) and International Labour Organization 9 Gifts Policy
8
(ILO) core labour standards. 10 Previous Incidents
9 Freedom of association & collective bargaining 11 Records
10 Occupational Health and Safety 12 Government Reporting
11 Worker Productivity Skills and Development
13 Best Practice Guidelines
12 Retrenchment- reducing the number of employees
14 Internal Auditors
13 Contractors, third parties, supply chains and temporary workers
Governance and 15 External Auditors
Environmental Pollution prevention and resource use efficiency
Business Whistleblower Management
and Social 14 Reducing waste and preventing pollution
Integrity 16 Whistleblowing Employees
Checklist Topics 15 Energy and Water Use Efficiency
Checklist Topics 17 Whistleblowing Third Parties
16 Greenhouse Gas Emissions and Climate Change
17 Pesticides and other Agrochemicals 18 Responsible officer
18 Contaminated land or land with liabilities 19 Associates – group companies
Community health, safety and security 20 Communication and training
20 Community health, safety and security 21 Employment Rights
21 Stakeholder engagement and consultation 22 Previous Incidents
22 Security Personnel 23 Records
Land acquisition and economic displacement 24 Internal Auditors
Acquisition of land which has or will result in the involuntary Corporate Governance Management
23
resettlement or economic displacement of people.
25 Commitment to Corporate Governance (CG)
Biodiversity conservation and natural resources management
26 Board structure and role
24 The value of biodiversity and the risks to biodiversity
25 Management of ecosystem services 27 Directors
Indigenous People 28 Board meetings
27 Protection of the rights of Indigenous Peoples 29 Board Committees
Cultural heritage 30 Minority Shareholders
28 Protection of cultural heritage 31 Transparency and Disclosure
Source: CDC ESG Checklist
Page 27 19 July 2021 EY analysis of VCCEdge dataEY’s Climate Change And Sustainability Practice
Shailesh Tyagi Chaitanya Kalia
Climate Change & Sustainability National Leader - Climate Change &
Services, India Sustainability Services, India
Partner – ESG and Responsible Partner - EY India
Investment - EY India T: +91 98201 08838
T: +91 98190 28366 E: Chaitanya.Kalia@in.ey.com
E: Shailesh.Tyagi@in.ey.com
Page 28 19 July 2021 EY analysis of VCCEdge dataSpotlight PE/VC investment trend in start-ups (1H2021) The better the question. The better the answer. The better the world works.
Spotlight: key trends start-up investments
► On a y-o-y basis, PE/VC investments in start-ups more than doubled to US$5.9 billion across 280 deals in
1H21 (US$2.2 billion across 261 deals in 1H20 and US$2.5 billion across 295 deals in 2H20). This is the
highest ever half-yearly value recorded by start-up investments on the back of large deals (value greater
than US$100m). 1H21 recorded highest ever number of large start-ups deals (13 large deals worth US$2.9
billion) in any year. As a result, the average deal size was also significantly larger in 1H21 at ~US$24 million
which is double the average deal size in 2020 (full year) as well as the largest ever average deal size for
start-up investments.
► Most major sectors recorded significant increase in start-up investments in 1H21. E-commerce with US$2.1
billion invested across 53 deals was the largest sector for start-up investments in 1H21, followed by financial
services with US$1.1 billion invested across 48 deals, media and entertainment with US$675 million
invested across 17 deals and technology with US$642 million invested across 46 deals. E-commerce
investments in 1H21 were more than twice the value invested in entire 2020 (US$1 billion).
Page 30 19 July 2021 EY analysis of VCCEdge dataSpotlight: start-up investments
US$m Start-up PE/VC investments #
6,000 313 400
5,000 293 295 280
300
4,000 5,184
208
3,000 147 164 169 261 5,905 200
2,000 4,023
2,329 2,457 2,718 2,235 2,499 100
1,000 1,176
- 0
1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 1H2020 2H2020 1H2021
Value Count
Deal size US$m Deal size #
2,911 13
>US$100m 605 >US$100m 4
484 4
965 12
US$50m-US$100m 576 US$50m-US$100m 7
344 5
1,084 33
US$20m-US$50m 526 US$20m-US$50m 17
707 21
424 30
US$10m-US$20m 288 US$10m-US$20m 20
247 16
522 157Spotlight: start-up investments sector-wise
Top sectors by value (US$m) Top sectors by # of deals
2,099 53
E-commerce 643 E-commerce 44
395 35
1,078 48
Financial services 543 Financial services 37
668 40
675 46
Media and entertainment 229 Technology 66
49 49
642 36
Technology 331 Education 29
377 22
461 20
Education 322 Retail and consumer products 11
209 11
225 18
Food and agriculture 36 Healthcare 18
86 16
179 17
Healthcare 23 Media and entertainment 24
214 26
148 10
Logistics 144 Business and professional services 18
95 11
122 9
Real estate 8 Food and agriculture 22
20 16
98 5
Business and professional services 28 Logistics 12
39 7
180 18
Others 192 Others 14
84 28
1H2021 2H2020 1H2020
Page 32 19 July 2021 EY analysis of VCCEdge dataSpotlight: top PE/VC investments in start-ups
Top PE/VC investments in start-ups – 1H2021
Company PE investors Sector US$m Stake (%)
Mohalla Tech Private Limited (Sharechat) India Quotient, Lightspeed, Tiger Global and others Media and entertainment 502 NA
API Holdings Private Limited (Pharmeasy) TPG Capital, Temasek, Naspers E-commerce 350 7
SoftBank, Shunwei Capital, Venture Highway and
Meesho Incorporated E-commerce 300 NA
others
API Holdings Private Limited (Pharmeasy) TPG, Temasek, B Capital, Kotak PE and others E-commerce 300 NA
Altimeter Capital, GGV Capital, DST Global,
Trustroot Internet Private Limited (Udaan) E-commerce 280 NA
Lightspeed, and others
RTP Global, Tiger Global, DST Global, Coatue
Dreamplug Technologies Private Limited (CRED) Management, Falcon Edge, Insight Venture and Financial services 215 10
others
Browserstack Software Private Limited (Percy) Accel, Bond Capital, Insight Venture Technology 200 5
Multiples, Temasek, 3one4 Capital, Bertelsmann and
Delightful Gourmet Private Limited (Licious) Food and agriculture 192 27
others
UpGrad Education Private Limited Unilazer Ventures, Temasek Education 130 NA
Zetwerk Manufacturing Businesses Private Limited Sequoia, KAE Capital, Greenoaks Capital, Lightspeed E-commerce 120 NA
Falcon Edge, Matrix Partners, Creation Investments,
OFB Tech Private Limited Financial services 110 14
Norwest Venture Partners
Insight Venture, Ribbit Capital, Steadview Capital,
Resilient Innovations Private Limited Financial services 108 12
Sequoia, Coatue and others
Microsoft's Venture Fund, Tiger Global, Steadview
Innovaccer Inc. Healthcare 105 NA
Capital, B Capital Fund and others
API Holdings Private Limited (Pharmeasy) CDPQ E-commerce 100 2
Evolvence, Accel, Tiger Global, Nexus Ventures and
Hella Infra Market Limited E-commerce 100 10
others
Page 33 19 July 2021 EY analysis of VCCEdge dataHow can you cut cost and still accelerate growth? Find out how EY’s insights can help companies grow from cash poor to cash rich Quarterly trend analysis – 2Q2021 The better the question. The better the answer. The better the world works.
Key trends: quarterly
Investments
► On a quarterly basis, PE/VC investments in 2Q21 increased by 26% y-o-y and 67% sequentially (US$16.9 billion in 2Q21 vs.
US$13.5 billion in 2Q20 and US$10 billion in 1Q21). In terms of number of deals, 2Q21 recorded an increase of 12%
compared to 2Q20 and a 12% decline compared to 1Q21 (243 deals in 2Q21 vs. 217 deals in 2Q20 and 275 deals in 1Q21).
► Pure play PE/VC investments (excluding real estate and infrastructure sectors) recorded its highest ever value of investments
in 2Q21, which is 10% higher compared to 2H20 and 80% higher than 1Q21 (US$14.1 billion in 1H21 vs. US$12.8 billion in
2Q20 vs. US$7.8 billion in 1Q21).
► The growth in 2Q21 is driven by a revival in buyouts and start-up investments. In terms of value, buyouts grew more than 10
fold in 2Q21 over last year and almost four times compared to previous quarter (US$6.3 billion in 2Q21 vs. US$592 million in
2Q20 and US$1.3 billion in 1Q21). Buyouts, which was the most impacted deal strategy post the onset of the COVID-19
pandemic in 1Q20, recorded 17 deals in 2Q21 compared to 7 in 2Q20 and 11 in 1Q21. Value of start-up investments in 2Q21
were 3.8 times higher compared to 2Q20 and 21% higher compared to 1Q21, this despite 2Q21 recording fewer number of
start-up deals compared to 2Q20 and 1Q21, an indication of increasing ticket size of start-up deals (114 deals in 2Q21 vs.
126 deals in 2Q20 and 166 deals in 1Q21). The average size of start-up deals in 2Q21 was US$32 million compared to
US$10 million in 2Q20 and US$19 million in 1Q21.
► Growth deals were the highest with US$6.4 billion invested across 73 deals (US$11.2 billion across 54 deals in 2Q20 and
US$4.6 billion across 65 deals in 1Q21). Growth investments in 2Q20 were higher on account of investments worth US$9.6
billion in Jio Platforms, followed by buyouts and start-up investments. PIPE investments recorded US$619 million across 18
deals in 2Q21 (US$360 million across 11 deals in 2Q20 and US$609 million across 12 deals in 1Q21). Credit investments
recorded US$355 million in 2Q21 compared to US$464 million in 2Q20 and US$480 million in 1Q21 with 18, 21 and 21
deals respectively.
► From a sector perspective, technology was at the top (US$4.8 billion across 42 deals), highest quarterly value of investments
in the sector ever followed by e-commerce sector (US$2.3 billion across 35 deals), and financial services sector (US$1.9
billion across 38 deals).
Page 35 19 July 2021 EY analysis of VCCEdge dataKey trends: quarterly
Exits
► 2Q21 recorded the second best quarter of exits at US$17.8 billion after US$18 billion recorded in 3Q18. On a year-on-year
(y-o-y) basis, exits were more than 16 times higher in value in 2Q21 (US$17.3 billion vs. US$1.1 billion in 2Q20) and were
higher by 3.8 times compared to 1Q21 (US$4.7 billion). The number of exits in 2Q21(58 exits) were twice that in 2Q20 (28
exits) and at par with number of exits in 1Q21 (60 exits).
► Exits via strategic sale were the highest with US$10.9 billion recorded across 19 deals, accounting for 61% of all exits in 2Q21
followed by 16 exits via secondary sale (sale to other PE funds) worth US$3.6 billion. 2Q21 recorded four PE-backed IPOs that
saw PE funds garner US$1.9 billion in sale proceeds.
► From a sector perspective, technology recorded the highest value of exits in 2Q21 (US$11.8 billion across 10 deals) followed
by infrastructure (US$1.8 billion across two deals).
► The largest exit in 2Q21 saw Hitachi buyout the stakes held by CPPIB and Partners Group in GlobalLogic for US$8.6 billion.
Fundraise
► 2Q21 saw US$1 billion in fundraises compared to US$171 million raised in 2Q20 and US$1.7 billion raised in 1Q21. The
largest fundraise in 2Q21 saw Alteria Capital raise US$179 million for its second venture debt fund.
Page 36 19 July 2021 EY analysis of VCCEdge dataPE/VC quarterly headline trends: investments
US$m Total PE/VC investments #
265 265 266 18,489 275
300
18,000 234 244 243
223 217 250
15,000 194 203
188
239 200
12,000 13,450
9,000 150
16,025 10,578 16,923
9,993
6,000 100
11,146 9,699 11,110 10,913 9,567
8,261 9,250
3,000 5,061 1,776 4,585 50
- 349 1,022 -
2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021
Value (US$m) # of deals Investment in Jio Platforms Investment in Reliance Retail
US$m PE/VC investments split across asset classes
2,796
16,000 1,096
1,760
5,258 588 70 4,497
12,000
511
1,695 2,871 360
840 895 218 2,511 3,090 910
8,000 862 2,626 1,286
1,450 1,490 765 14,068
1,378 12,792
11,196
8,610 1,028 9,707
4,000 7,941 8,256 7,058 320 7,797
6,593 6,749
5,246
3,714
-
2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021
PE/VC investment (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 37 19 July 2021 EY analysis of VCCEdge dataPE/VC quarterly headline trends: exits
US$m Total PE/VC exits #
7,000 80
6,000 60 58
52 60
5,000 44
41 42 42 42
4,000 36 37 37 17,781
32 40
28
3,000
18,016
4,755 4,672
2,000 3,959 20
3,313
1,000 2,420 2,658 2,296
1,895
1,192 1,060 757
- -
2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021
Value (US$m) # of exits
US$m PE/VC exits split across asset classes
7,000 9 1,760
13
6,000 501
5,000
844 791
4,000 82 284 90
17,994 7
3,000 348
104 15,520
354 201
2,000 3,829 3,674 89 653 3,791
133 2,958 -
1,000 2,066 92 2,353 302
1,807 1,643
967 758 754
-
2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021
Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 38 19 July 2021 EY analysis of VCCEdge dataPE/VC quarterly headline trends: fundraise
US$m Fundraise #
4,000 25
20
17 20
3,000 15 15 15
14 12 13 14
12 11 15
2,000 3,809 3,869
10
2,607 2,479 2,794 2,749 5 2,768
1,000 2,335 10
1,701 1,430 5
1,713 1,048
171
- -
2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021
Total funds raised (US$m) Total # of funds raised
Page 39 19 July 2021 EY analysis of VCCEdge dataInvestments (excluding infrastructure and real estate)
Total investments (US$m) # of deals
2Q2021 14,068 2Q2021 214
1Q2021 7,797 1Q2021 248
2Q2020 12,792 2Q2020 207
Deal type US$m Deal type #
145 17
Credit investment 419 Credit investment 18
235 14
4,955 10
Buyout 501 Buyout 4
323 5
490 16
PIPE* 342 PIPE* 9
360 11
3,051 111
Start-up/Early stage 2,662 Start-up/Early stage 164
852 124
5,427 60
Expansion/Growth 3,874 Expansion/Growth 53
11,022 53
Deal size US$m Deal size #
10,805 29
>US$100m 4,810 >US$100m 20
10,945 16
1,306 17
US$50m-US$100m 1,095 US$50m-US$100m 14
644 9
1,308 38
US$20m-US$50m 1,046 US$20m-US$50m 32
643 19
284 19
US$10m-US$20m 453 US$10m-US$20m 32
212 14
365 88Investments: infrastructure
Total investments (US$m) # of deals
2Q2021 1,096 2Q2021 13
1Q2021 910 1Q2021 10
2Q2020 588 2Q2020 8
Deal type US$m Deal type #
34 1
Credit investment 51 Credit investment 2
229 4
502 4
Buyout 700 Buyout 2
204 2
129 2
PIPE* 157 PIPE* 2
70 1
Start-up/Early stage 2 Start-up/Early stage 1
4 1
361 5
Expansion/Growth - Expansion/Growth 3
150 1
Deal size US$m Deal size #
701 4
>US$100m 809 >US$100m 3
496 3
338 4
US$50m-US$100m US$50m-US$100m
54 2
US$20m-US$50m 99 US$20m-US$50m 3
77 2
- -
US$10m-US$20m - US$10m-US$20m -
- -
3 2Investments: real estate
Total investments (US$m) # of deals
2Q2021 1,760 2Q2021 16
1Q2021 1,286 1Q2021 17
2Q2020 70 2Q2020 2
Deal type US$m Deal type #
176 3
Credit investment 11 Credit investment 1
851 3
Buyout 416 Buyout 5
65 1
PIPE* 110 PIPE* 1
116 2
Start-up/Early stage 6 Start-up/Early stage 1
5 1
616 8
Expansion/Growth 743 Expansion/Growth 9
Deal size US$m Deal size #
1,181 4
>US$100m 790 >US$100m 4
427 5
US$50m-US$100m 355 US$50m-US$100m 6
65 1
115 4
US$20m-US$50m 116 US$20m-US$50m 4
29 2
US$10m-US$20m 11 US$10m-US$20m 1
7 1Investments: sector-wise
Top sectors by value (US$m) Top sectors by # of deals
4,761 42
Technology 444 Technology 25
340 29
2,311 38
E-commerce Financial services 52
2,471 36
330
35
1,942 E-commerce 48
Financial services 1,675 35
930
18
1,760 Education 26
Real estate 1,286 13
70 16
Retail and consumer products 16
1,096 5
Infrastructure 910
588 16
Real estate 17
1,046 2
Pharmaceuticals 524
873 13
Infrastructure 10
778 8
Retail and consumer products 93 11
4 Healthcare 18
16
729
Education 672 8
189 Pharmaceuticals 12
8
2,500 46
Others 1,918 Others 51
10,126 65
2Q2021 1Q2021 2Q2020
* In 2Q2020, others includes US$9.6 billion invested in telecom sector, mainly in Jio Platforms
Page 43 19 July 2021 EY analysis of VCCEdge dataTop PE/VC investments
Top PE/VC investments excluding infrastructure and real estate in 2Q2021
Company PE investors Sector Stage US$m Stake (%)
Mphasis Limited Blackstone, ADIA, UC Invest, GIC Technology Buyout ~2,800 ~ 75
Bundl Technologies Private Limited Accel, Falcon Edge, Amansa, Carmignac,
E-commerce Growth capital 800 16
(Swiggy) QIA, GIC and others
Infogain Corporation Apax Partners Technology Buyout ~800 100
Retail and consumer
Vini Cosmetics Private Limited KKR, Westbridge Capital Buyout 648 56
products
India Quotient, Lightspeed, Tiger Global Media and
Mohalla Tech Private Limited (Sharechat) Start-up 502 NA
and others entertainment
UBS, Blackstone, ADQ, Phoenix Rising, IIFL
Think and Learn Private Limited (Byju’s) Education Growth capital 400 2.4
and others
Zydus Animal Health and Investments
Multiples, CPPIB Pharmaceuticals Buyout 400 100
Limited
Aragen Life Sciences Private Limited Goldman Sachs Pharmaceuticals Growth capital 333 33
SoftBank, Shunwei Capital, Venture
Meesho Incorporated E-commerce Start-up 300 NA
Highway and others
TPG, Temasek, B Capital, Kotak PE and
API Holdings Private Limited (Pharmeasy) E-commerce Start-up 300 NA
others
Manipal Healthcare Private Limited NIIF Strategic Opportunities Fund Healthcare Growth capital 286 NA
Baron Capital, Lone Pine Capital, Temasek,
Pine Labs Private Limited Duro Capital, Sunley House, Marshall Wace Financial services Growth capital 285 1
and others
FMR, GIC, Chimera Investments, Baillie
Delhivery Private Limited Logistics Growth capital 277 9
Gifford and Company
Better World Technology Private Limited
SoftBank, Sodexo SVC India Private Limited Financial services Growth capital 250 17
(Zeta)
Parksons Packaging Limited Warburg Pincus Industrial Products Buyout 216 80
Page 44 19 July 2021 EY analysis of VCCEdge dataTop PE/VC investments
Top infrastructure and real estate investments in 2Q2021
Company PE investors Sector Stage US$m Stake (%)
Embassy Industrial Parks Private Limited Blackstone Real estate Buyout 715 100
2 Solar Projects of Fortum India Actis Infrastructure Buyout 332 100
Phoenix Mills Ltd., Investment Platform GIC Real estate Growth capital 208 36
Phoenix Tech Zone Private Limited Varde Partners Real estate Credit investment 156 NA
IndInfravit Trust CPPIB Infrastructure Growth capital 135 16
The Norwegian Investment Fund for
Fourth Partner Energy Private Limited Infrastructure Growth capital 125 NA
Developing Countries, The Rise Fund
PowerGrid InvIT CPPIB Infrastructure PIPE 108 NA
Phoenix IT Infra’s property in Hyderabad Ascendas India Trust Real estate Buyout 69 100
Prius Commercial Projects Kotak Special Situations Fund Real estate Buyout 61 100
Phoenix Group’s, building aVance 6 Ascendas India Trust Real estate Buyout 60 >50
Falcon Edge, Matrix Partners, Sequoia and
Dtwelve Spaces Pvt. Ltd. (Stanza Living) Real estate Start-up 102 NA
others
CDPQ, ADIA, Marshall Wace, Brookfield,
Macrotech Developers (Lodha) Real estate Growth capital 100 NA
Segantii Capital and others
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure
Page 45 19 July 2021 EY analysis of VCCEdge dataExits: quarterly analysis
Total exits (US$m) # of deals
2Q2021 17,781 2Q2021 58
1Q2021 4,672 1Q2021 60
2Q2020 1,060 2Q2020 28
Exit type US$m Exit type #
1,874 16
Open market 1,069 Open market 22
945 17
3,616 16
Secondary 928 Secondary 15
20 3
10,875 19
Strategic 1,853 Strategic 10
2 6
172 3
Buyback 460 Buyback 4
- 1
1,244 4
IPO 361 IPO 9
93 1
Top sectors US$m Top sectors #
11,782 10
Technology 30 Technology 1
137 2
1,760 8
Infrastructure 791 Financial services 14
- 12
1,323 7
Financial services 1,185 E-commerce 7
337
719 6
Automotive 60 Pharmaceuticals -
4
501 4
Real estate 90 Education -
302 1
404 4
Retail and consumer products 276 Retail and consumer… 6
0 1
1,293 19
Others 2,239 Others 32
283 22
Page 46 19 July 2021 EY analysis of VCCEdge dataTop exits
Top exits in 2Q2021
Company Sector Sellers Buyer Exit type US$m Stake (%)
GlobalLogic Incorporated Technology CPPIB, Partners Group Hitachi Strategic 8,640 90
MphasiS Limited Technology Blackstone NA Secondary 2,000 55
Adani Green Energy
SB Energy Holding Infrastructure Softbank Strategic 1,760 80
Limited
Sona BLW Precision Forgings
Automotive Blackstone NA IPO 719 33
Limited
SBI Cards and Payment Services
Financial services Carlyle NA Open market 649 5
Limited
SBI Life Insurance Company
Financial services Carlyle NA Open market 531 4
Limited
Embassy Industrial Parks Private Warburg Pincus, Embassy
Real estate Blackstone Secondary 500 70
Limited Property Developments
Infogain Corporation Technology ChrysCapital Apax Secondary 500 70
Aakash Educational Services Think and Learn Private
Education Blackstone Strategic 375 38
Limited Limited (Byju’s)
TaskUs Incorporated Technology Blackstone NA IPO 300 12
Coforge Limited Technology Baring Asia Private Equity NA Open market 221 8
Retail and consumer
Vini Cosmetics Private Limited Sequoia KKR, Westbridge Capital Secondary 200 17
products
Crompton Greaves Consumer Retail and consumer
Advent International NA Open market 185 5
Electricals Limited products
Krishna Institute of Medical
Healthcare General Atlantic NA IPO 177 20
Sciences Limited
Aragen Life Sciences Private
Pharmaceuticals ChrysCapital Goldman Sachs Secondary 168 17
Limited
Page 47 19 July 2021 EY analysis of VCCEdge dataFundraise
Top fundraise in 2Q2021
Status Fund US$m Strategy
Raised Alteria Capital 179 Venture debt
Raised Green Growth Equity Fund, Eversource Fund 137 Green infrastructure
Raised JC Flowers India opportunities fund 100 Mid-sized distressed assets
Raised Venturi Partners Fund I 100 Consumer space
Raised Motilal Oswal Real Estate (MORE) 89 Senior secured debt in post-approval projects
Announced Edelweiss Financial Services 1,500 Distressed assets
Announced Kotak Investment Advisors 800 ESG compliant infrastructure
Fintech, consumer tech, ed tech, health tech and software as a
Announced Kotak Pre IPO Opportunities Fund 274
service
Page 48 19 July 2021 EY analysis of VCCEdge dataHow soon after investment should you begin planning the exit? EY helps clients begin with the end in mind to help them improve returns Monthly trend analysis: June 2021 The better the question. The better the answer. The better the world works.
Key trends
Investments
► PE/VC investments in June 2021 were 22% lower than the value recorded in June 2020 and 33% higher
compared to May 2021 (US$5.4 billion in June 2021 vs. US$6.9 billion in June 2020 and US$4 billion in
May 2021). June 2020 had large investments worth US$4.9 billion in Jio Platforms. If we exclude these one
off investments in Jio Platforms, investments in June 2021 are more than 2.7 times the value recorded in
June 2020 (US$2 billion).
► From the point of view of deal type, buyouts, which was the most impacted deal strategy last year were the
highest in June 2021 at US$1.9 billion across five deals, followed by growth investments at US$1.6 billion
across 25 deals and start-up investments at US$1.4 billion across 53 deals.
► June 2021 recorded 12 large deals (deals of value greater than US$100 million) aggregating US$3.6 billion
compared to 11 large deals worth US6.1 billion in June 2020 which includes deals worth US$4.9 billion in
Jio Platforms.
► From a sector point of view, technology sector was the top sector in June 2021 with US$1.4 billion in PE/VC
investments followed by retail and consumer sector with investments worth US$758 million and
infrastructure sector with investments worth US$646 million.
Page 50 19 July 2021 EY analysis of VCCEdge dataKey trends
Exits
► June 2021 recorded 29 exits worth US$3.2 billion, 4.8 times the value of exits in June 2020 (US$657
million) and 74% lower compared to May 2021 (US$12 billion). Exits via IPOs were the highest in June 2021
at US$1.2 billion across four deals.
► The largest exit in June 2021 saw Blackstone sell a partial exit (33%) in Sona BLW Precision
Forgings Limited for US$719 million in an offer for sale during the IPO.
Fundraise
► June 2021 recorded total fundraises of US$325 million compared to US$121 million raised in June 2020.
Page 51 19 July 2021 EY analysis of VCCEdge dataPE/VC monthly headline trends: investments
Total PE/VC investments
US$m #
7,545 106 120
8,000 6,873 105
82 88 100
81 77 83 84 75
6,000 72 70
92 67 80
4,070 4,299 3,864
4,000 60
7,080 7,541
5,858 5,355 40
4,917
2,000 3,303 1,282 4,027
2,210 2,519 20
1,776 1,022 1,616
- 349 0
Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Value (US$m) # of deals Investment in Jio Platforms Investment in Reliance Retail
US$m PE/VC investments: split across asset classes
US$m
8,000 217
7,000 685 429
379 65 936
6,000 2,094 659
5,000 2,398 902 646
15 226 233 333
4,000 298
6,428 1,175 6,895 997
3,000 73
4,766 5
2,000 62 4,073 177 451 4,454 4,376
3,757 3,746
2,684 90 2,797
1,000 1,877 1,994
1,349
-
Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
PE/VC investments (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)
Page 52 19 July 2021 EY analysis of VCCEdge dataPE/VC monthly headline trends: exits
Total PE/VC exits
US$m #
12,000 29 29 35
30
22
8,000 19 25
17 17
14 20
12 13 12
11 11 15
9 11,956
4,000 10
657 974 1034 313 2,659 3,166 5
134 67 556 288 2,218 2,141
- 0
Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Value (US$m) # of exits
US$m PE/VC exits: Split across asset classes
US$m
12,000
1,760
501
8,000
9,695
4,000
28
524 791 62 3,166
302 134 2 313 2,190 2,659
- 355 65 556 159 129 450 1,034 1,288
Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)
Page 53 19 July 2021 EY analysis of VCCEdge dataPE/VC monthly headline trends: fundraise
Fundraise
US$m #
3,500 9 10
8 8
2,800 8
6 6
2,100 6
4 4 4 4
1,400 3 3 4
2,195 2
2374 1
700 1476 2
121 480 93 20 854 380 479 569 154
- 325 0
Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Total funds raised (US$m) Total # of funds raised
Page 54 19 July 2021 EY analysis of VCCEdge dataPE/VC investments: US$4,376 million over 97 deals (excluding
infrastructure and real estate investments)
Top sectors by value US$m Top sectors by volume
1,409 17
Technology 238 Financial services 9
175 11
758 16
Retail and consumer products 2 Technology 16
3 6
516 14
Education 36 E-commerce 8
128 10
510 11
Financial services 818 Retail and consumer products 1
281 3
479 8
E-commerce 305 Education 6
87 6
199 6
Food and agriculture 17 Media and entertainment 1
40 2
186 5
Pharmaceuticals 733 Healthcare 1
656 6
321 24
Others 647 Others 22
5,059 31
Deal size Deal Type
Value (US$m) Volume Value (US$m) Volume
2,949 9 98 12
2,092 >US$100m 8 - Credit investment 1
5,814 9 208 6
522 7 1,448 3
195 US$50m - US$100m 2 421 Buyout 4
184 2 40 2
579 16 368 9
323 US$20m - US$50m 10 27 PIPE* 3
242 7 108 2
132 8 1,319 51
106 US$10m - US$20m 8 319 Start-up/Early stage 32
68 4 277 41
195 46 1,143 22
81PE/VC investments: US$979 million over nine deals
(infrastructure and real estate investments)
Top sectors by value US$m Top sectors by volume
646 5
Infrastructure 233 Infrastructure 3
379 6
333 4
Real estate 997 Real estate 6
65 1
Deal size Deal Type
Value (US$m) Volume Value (US$m) Volume
665 3 13 1
850 >US$100m 2 - Credit investment -
292 2 229 4
264 3 428 2
328 US$50m - US$100m 4 812 Buyout 3
65 1 65 2
21 1 21 1
51 US$20m - US$50m 2 - PIPE* -
77 2 -
29 2 86 2
- US$10m - US$20m 100 Start-up/Early stage 1
-
431 3
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