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PE Roundup – 1Q2018 & March‘18

PE Quarterly Roundup – 1Q2018

Page 3

Key Trends - Quarterly

Investments

► PE/VC investment activity across asset classes was off to one of the best starts ever in 1Q2018, recording investments

across asset classes worth US$7.9 billion, eclipsing the previous 1Q high of US$4.6 billion seen in 2008 by 72%. It was

also the second best quarter ever since US$8.7 billion recorded in 3Q2017.

► This uptick in 1Q2018 investment levels was primarily aided by US$3.1 billion worth of investments made in the

Infrastructure and Real Estate sectors, which accounted for 39% of all investments in 1Q2018, compared to just US$305

million invested in these asset classes in 1Q2017 and US$1.7 billion in 4Q2017. This was also the highest ever quarterly

investment by the PE/VC industry into Infrastructure and Real Estate.

► Investments in Infrastructure and Real Estate by PE/VC funds in 1Q2018 was more than 50% of the amount invested in

these asset classes in the whole of 2017. Adjusted for these large investments into Infrastructure and Real Estate,

quarterly PE/VC investments have taken a dip in 1Q2018 closing at $4.8 billion after US$5.6 billion in 4Q2017. However,

on a year-on-year basis, 1Q2018 remains the best 1Q for PE/VC investments even after adjusting for these large

investments in Infrastructure and Real Estate.

► There were 13 deals of value greater than US$100 million made in 1Q2018, aggregating to US$5.7 billion and accounting

for 72% of total investments made in 1Q2018, six of which were into Infrastructure and Real Estate, worth almost US$2.7

billion. 4Q2017 and 1Q2017 had 17 and six deals greater than $100 million respectively.

► The largest deal during the quarter saw GIC, KKR and others invest US$1.7 billion into HDFC Ltd., the largest PIPE

investment since Temasek invested about US$2 billion in Bharti Airtel in 2007. 1Q2018 also recorded the first ever

investment by National Investment and Infrastructure Fund (NIIF), India’s sovereign wealth fund wherein Hindustan

Infralog Pvt. Ltd., a JV between NIIF and DP world, bought 90% stake in Continental Warehousing Corporation (Nhava

Sheva) Ltd. for US$400 million. The deal provided an exit to a clutch of early investors including Warburg Pincus, IFC and

others.

EY Analysis of VCCEdge Data

Page 4


Investments (contd.)

► 1Q2018 also recorded the largest PE/VC investment in the Indian Infrastructure asset class, with Macquarie purchasing

tolling rights to 648 kms of national highways from the NHAI for US$1.5 billion. This is India’s first toll-operate-transfer

(TOT) project and is also one of the largest foreign investments in Indian public infrastructure.

► In terms of stage of investment, the Buyouts category received the largest share of investments (34%, US$2.7 billion

across 12 deals), primarily on account of the large Macquarie TOT deal. Out of the 12 buyout deals, six were in the

Infrastructure and Real estate sectors, worth US$2.3 billion. If we exclude Infrastructure and Real Estate investments,

PIPE category (US$2 billion) received the largest share of PE/VC investment. In terms of volume, startup/early stage

investing recorded the highest number of deals (82 deals, accounting for almost 46% of the total deals in 1Q2018).

► Notwithstanding the large investments in Infrastructure and Real Estate, carrying forward the trend seen in 2017, the

Financial Services sector garnered highest share of PE/VC investment in 1Q2018, with US$2.9 billion invested across 31

deals, the highest quarterly investment into the sector. 2017 was a record year for Financial Services with investments

worth US$7.2 billion.


Page 5


Exits

► Exits in 1Q2018 were marred by volatility in the global capital markets which were spooked by fears of a trade war between

US and China. 1Q2018 recorded US$1.8 billion in exits, 10% lower than 1Q2017 and 51% lower compared to 4Q2017.

Exits via strategic sale were the highest in terms of value (US$597 million), while in terms of number of deals, exits via

open market operations were the highest (20 deals). There were four PE/VC backed IPOs in 1Q2018 wherein PE/VC funds

garnered US$172 million via offer for sale. IFC and GIC’s US$125 million exit from Bandhan Bank Ltd. was the largest exit

via an IPO by a PE/VC fund in 1Q2018.

► The largest exit in 1Q2018 saw Arrow Electronics, an American Fortune 500 company which is into manufacturing of

electronic components and computer products, acquiring E-Infochips, a Gujarat based company that is into chip design and

embedded systems, from Gujarat Venture Finance for US$281 million. Another large exit during the quarter saw Warburg

Pincus, IFC and Aureos South Asia Fund sell their combined stake of around 60% in Continental Warehousing Corporation

(Nhava Sheva) Ltd. to Hindustan Infralog Pvt. Ltd., a JV between NIIF and DP world, for US268 million.

► In terms of sectors, Financial Services (7 deals) and Industrial Products (7 deals) recorded the highest number of exits. In

terms of value, Technology was the top sector with exits worth US329 million across 5 deals.

► .


Fund Raise

► Fund raising activity in 1Q2018 remained strong, with funds worth US$1.3 billion raised, on par with funds raised in

1Q2017. Moreover, fund raise plans announced stood at US$10.3 billion, a sign of strong fund raising activity to follow as

the year progresses.

.

Page 6 EY Analysis of VCCEdge Data

4,813 3,450 5,139 6,003 5,043 4,310 3,658 3,097 5,138 4,179 6,214 8,686 7,379 7,916

126

181 188

220

178

146164

121

157

129

165

138163

180

0

50

100

150

200

250

-

3,000

6,000

9,000

4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018

Total PE/VC Investments

Value (US$m) # of deals

#US$m

3,449 2,454 4,608 4,687 3,715 3,071 3,078 2,154 4,041 3,874 4,894 6,130 5,639 4,831

1,121

919

532 1,261

696 889 432

837

1,019 253

1,033

2,254

1,440 1,451

243

77

55

632 350

148 106

78

51

287

302

300 1,634

-

3,000

6,000

9,000

4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018

PE/VC Investments - split across asset classes

PE/VC (other sectors) (US$m) Real Estate (US$m) Infrastructure (US$m)

US$m

PE/VC quarterly headline trends – Investments


1,081 1,161 2,749 1,205 1,358 2,067 1,073 2,046 1,483 2,033 2,681 4,550 3,749 1,824

49

60 5966 69

42 44

6459 61

6964 64

51

0

25

50

75

-

1,000

2,000

3,000

4,000

5,000

4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018

Total PE/VC Exits

Value (US$m) # of exits

#US$m

998 1,132 2,667 1,165 1,274 1,814 901 1,999 1,088 1,793 2,570 4,270 3,446 1,486

69 30

69

40 84

252

157

3

350

184

111

276

236

26214 -

13

- 0

1

15

44

45

56

-

4

67

76

-

1,000

2,000

3,000

4,000

4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018

PE/VC Exits - split across asset classes

Other Sectors (US$m) Real Estate (US$m) Infrastructure (US$m)

US$m

PE/VC quarterly headline trends – Exits


1,279 1,892 1,938 1,285 1,325 2,075 942 320 976 1,287 719 2,234 1,533 1,304

10

5

11 12

8

16 14

2

9 11

9

13 11 11

-

5

10

15

20

-

1,000

2,000

4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018

Fund Raise

Total funds raised (US$m) Total # of funds raised

#US$m

PE/VC quarterly headline trends – Fund Raise

Page 9

** Deal value not available on 21 out of 120 deals in 1Q2017 and 19 out of 161 deals in 1Q2018


1,417

487

1,692

130

148

1,198

675

2,043

401

515

Expansion/Growth

Startup/Earlystage

PIPE

Buyout

Credit Investment

Deal Type US$m

229

220

292

683

2,450

251

253

513

830

2,986

< $10m

$10m - $20m

$20m - $50m

$50m - $100m

> $100m

Deal Size US$m

30

68

15

3

4

56

78

10

6

11

Expansion/Growth

Startup/Earlystage

PIPE

Buyout

Credit Investment

Deal Type #

3,874

4,831

1Q2017

1Q2018

Total Investments (US$m)

121

161

1Q2017

1Q2018

# of Deals

61

14

9

9

6

95

16

14

10

7

< $10m

$10m - $20m

$20m - $50m

$50m - $100m

> $100m

Deal Size #

Investments – (excluding Infrastructure and Real Estate)


-

-

169

136

403

8

-

2,316

358

Expansion/Growth

Startup/Earlystage

PIPE

Buyout

CreditInvestment

Deal Type US$m

12

185

108

8

49

70

270

2,687

< $10m

$10m - $20m

$20m - $50m

$50m - $100m

> $100m

Deal Size US$m

1

-

4

4

5

4

-

6

4

Expansion/Growth

Startup/Earlystage

PIPE

Buyout

Credit Investment

Deal Type #

305

3,085

1Q2017

1Q2018


9

19

1Q2017

1Q2018

# of Deals

1

5

2

4

3

2

4

6

< $10m

$10m - $20m

$20m - $50m

$50m - $100m

> $100m

Deal Size #

Investments – Infrastructure and Real Estate

Page 11

*** RCP – Retail & Consumer Products


1,319

171

10

295

85

251

890

253

51

852

191

54

122

221

375

459

465

1,451

1,634

2,943

Others

Education

Industrial products

Healthcare

Ecommerce

Logistics

Technology

Real Estate

Infrastructure

Financial services

Top Sectors by value (US$m)1Q2018

1Q2017

31

9

1

5

7

10

8

11

18

29

28

6

6

6

13

15

16

20

31

39

Others

Food and Agri

Power and utilities

RCP

Healthcare

Education

Real Estate

Ecommerce

Financial services

Technology

Top Sectors by # of deals

1Q 2018 Investments –Sector Cut

Page 12

Top PE investments excluding Infrastructure and Real Estate in 1Q2018

Company PE Investor Sector Stage US$mStake(%)

HDFC Ltd GIC, KKR, and others Financial services PIPE Financing 1,731 4

Continental Warehousing Corporation (Nhava Sheva) Ltd.

Hindustan Infralog Pvt. Ltd.(DP World, NIIF )

Logistics Buyout 400 90

Max Group KKR Financial services Credit Investment 315 NA

NSDL e-Governance Infrastructure Ltd.

IIFL Technology Growth Capital 170 30

Religare Enterprises Ltd. Bay Capital and others Financial services PIPE Financing 142 50

MedPlus Health Services Pvt. Ltd Goldman Sachs Healthcare Credit Investment 115 NA

Monnet Ispat Aion-JSW’s Industrial products

PIPE Financing 113 53

Bundl Technologies Pvt. Ltd.Naspers Ltd., Meituan-Dianping

Ecommerce Startup/Early Stage 100 NA

National Stock Exchange of India Ltd.

IIFL Financial services Growth Capital 100 NA

RattanIndia Finance Pvt. Ltd. Lone Star Financial services Growth Capital 100 NA


Top PE Investments

Page 13

Company PE Investor Sector Stage US$mStake(%)

NHAI road assets Macquarie Infrastructure Buyout 1,462 NA

Equinox Business Park Brookfield Real Estate Buyout 384 NA

Indiabulls Properties Pvt. Ltd. Blackstone Real Estate Buyout 346 50

The Wadhwa Group Piramal Real Estate Credit Investment 235 NA

Shriram Properties Pvt. Ltd. ASK Property Real Estate Growth Capital 155 NA

Feedback Infra Pvt. Ltd. ADV Partners Infrastructure Growth Capital 105 NA

Advantage Raheja Group hotels Piramal Finance Real Estate Credit Investment 87 NA

Bangalore International Airport Ltd Fairfax India Infrastructure Growth Capital 67 6

NV Developers Pvt Ltd Godrej PE Real Estate Growth Capital 63 NA

Embassy Golf Links Business Park , Sanjay Ghodawat Group

Xander Real Estate Buyout 54 100


Top PE Investments

Top Infrastructure and Real Estate investments in 1Q2018


38

210

43

851

890

172

291

597

437

327

IPO

Buyback

Strategic

Secondary

Open Market

Exit Type US$m

578

522

184

29

720

602

159

190

262

284

329

Others

Power & Utilities

Financial Services

Real Estate

Logistics

Technology

Top Sectors US$m

2

9

11

9

30

4

6

10

11

20

IPO

Buyback

Strategic

Secondary

Open Market

Exit Type #

2,033

1,824

1Q2017

1Q2018


61

51

1Q2017

1Q2018

# of Deals

32

5

2

6

14

2

22

5

5

5

7

7

Others

Technology

Food and Agri

Real Estate

Financial Services

Industrial products

Top Sectors #

1Q2018 Exits –Analysis

Page 15

Top Exits in 1Q2018

Company Sector Sellers Buyer Exit Type US$mStake (%)

E-Infochips Ltd. Technology GVFLArrow Electronics Inc.

Strategic 281 100

Continental Warehousing Corporation (NhavaSheva) Ltd.

LogisticsWarburg Pincus, Aureos South Asia Fund, IFC

Hindustan InfralogPvt. Ltd. (DP world and NIIF JV)

Secondary 268 60

Sterlite Power Grid Ventures Ltd.

Power & UtilitiesStandard Chartered Private Equity

Sterlite Power Transmission Ltd

Strategic 159 28

Lodha’s Palava township project

Real Estate Kotak Realty Lodha Buyback 129 NA

Bandhan Bank Ltd.Financial Services

IFC,GIC NA IPO 125 NA

MedPlus Health Services Pvt. Ltd

HealthcareMount Kellett, TVS Capital and others

MedPlus Health Services Pvt. Ltd

Buyback 115 68

Saavn.comMedia & Entertainment

Tiger Global and others

Reliance Industries Ltd

Strategic 104 NA

GMR Infrastructure Ltd. Infrastructure Temasek NAOpen Market

76 4

Coffee Day Enterprises Ltd.

Food and Agriculture

KKR NAOpen Market

62 5

Lenskart Solutions Pvt. Ltd.

Ecommerce IDG ,TPGTR Advisors and Premji Invest

Secondary 61 NA


Top Exits

Page 16

Top Fund Raise in 1Q2018

Status Fund US$m Strategy Remark

Raised Godrej Fund Management 600 Real Estate Final close of new fund

Raised SeaLink Capital 315 Sector agnostic Final close of first fund

Raised Lighthouse Fund 120 Sector agnostic Final close of third fund

Raised Rajasthan govt. 77 Green Energy Final close of new fund

Raised Omnivore Partners 46 Food and Agri First close of second fund


Fund Raise

PE Monthly Roundup – March’18

Page 18

► March recorded US$3 billion in deal value, an increase of 14% compared to US$2.6 billion recorded in March 2017. As

noted earlier, this growth was primarily driven by some large investments into the Infrastructure and Real Estate sectors.

Excluding these asset classes, PE/VC investments in 2018 have recorded a declining trend with US$951 million

recorded in March, compared to US$1.2 billion in February and US$2.7 billion in January.

► March recorded 28% increase in value of exits compared to same period last year (US$705 million across 12 exits in

March 2018 vs US$550 million across 22 exits in March 2017) and a significant jump from the lows of US$150 million

recorded in February 2018.

► There were US$1.1 billion worth funds raised in March 2018.


Key Trends

Page 19

PE/VC monthly headline trends – Investments


2,610 1,920 3,447 847 1,468 5,424 1,795 2,095 2,637 2,647 3,506 1,438 2,972

57

66

56

43 42

5046

55 55 53 53

6661

0

10

20

30

40

50

60

70

-

1,000

2,000

3,000

4,000

5,000

Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Total PE/VC Investments

Value (US$m) # of deals

#US$m

2,424 1,742 2,686 466

1,085 3,782 1,264 1,773 1,653 2,212 2,686 1,195 951

187

111

740

182

383

1,640

230 322 684

435

820

243 388

-67

20

200 -

2

300 -300 -

-

-

1,634

-

1,000

2,000

3,000

4,000

5,000


PE/VC Investments – split across asset classes

PE/VC Investments(other sectors) (US$m) Real Estate (US$m) Infrastructure (US$m)

US$m


550 843 1,383 455 352 2,154 2,044 623 2,725 401 969 150 705

22

32

24

13

8

32

24

17

25 22

27

12 12

-

25

-

1,000

2,000

3,000


Total PE/VC Exits

Value (US$m) # of exits

#US$m

498 843 1,328 398 352 2,086 1,832 466 2,708 272

813 97

576

54

57

64 212

158

16

62

80

53

12952

4

67

76

-

-

1,000

2,000

3,000


PE/VC Exits – split across asset classes

Other Sectors (US$m) Real Estate (US$m) Infrastructure (US$m)

US$m

PE/VC monthly headline trends – Exits

Page 21

PE/VC monthly headline trends – Fund Raise


106 377 110 232 436 109 1,689 31 675 828 244 153 1,060

3 2

3 4

3 2

8

2

6

3

7

3 4

-

2

4

6

8

10

-

1,000

2,000


Fund Raise

Total funds raised (US$m) Total # of funds raised

#US$m

Page 22

75(31) 65(4)38(1)

370(5)400(1)

< $10m $10m - $20m $20m - $50m $50m -$100m

> $100m

Deal Value US$m (Volume)

PE Investments – US$951 million over 54 deals


68(4)

400(5)

3(1)

118(25)

360(19)

CreditInvestment

Buyout PIPEFinancing

Startup/EarlyStage

GrowthCapital

Deal Type US$m (Volume)

36

20

83

181

229

401

Others

Pharmaceuticals

Technology

Ecommerce

Financial services

Logistics

Top Sectors by Value US$m

15

4

5

8

8

14

Others

Education

Healthcare

Financial services

Ecommerce

Technology

Top Sectors by Volume

Page 23

5(1) 36(2) 67(1)

1912(3)

< $10m $10m - $20m $20m - $50m $50m -$100m

> $100m


Infra and Real Estate Investments – US$2,021 million over 7 deals


36(2)

346(1)

0(0) 5(1)

1633(3)

CreditInvestment

Buyout PIPEFinancing

Startup/EarlyStage

GrowthCapital

Deal Type US$m (Volume)

1,634

388

Infrastructure

Real Estate

By Value US$m

3

4

Infrastructure

Real Estate

By Volume

Page 24

Top PE Investments

Top PE Investments excluding Infrastructure and Real Estate in March 2018

Company PE Investor Sector Stage US$mStake

(%)

Continental Warehousing Corporation (Nhava Sheva) Ltd.

Hindustan Infralog Pvt. Ltd.(DP World and NIIF JV )

Logistics Buyout 400 90

RattanIndia Finance Pvt. Ltd. Lone StarFinancial services

Growth Capital 100 NA

Pine Labs Pvt. Ltd. Actis, Altimeter CapitalFinancial services

Growth Capital 82 NA

Promoters of KPIT Technologies Ltd.

KKR Technology Credit Investment 65 NA

Lenskart Solutions Pvt. Ltd.TR Advisors Ltd. and PremjiInvest

Ecommerce Growth Capital 62 NA


Page 25

Top Infrastructure and Real Estate Investments

Company PE Investor Sector Stage US$mStake

(%)

NHAI road assets Macquarie Infrastructure Buyout 1,462 NA

Indiabulls Properties Pvt. Ltd. Blackstone Real Estate Buyout 346 50

Feedback Infra Pvt. Ltd.ADV Opportunities Fund II LP

Infrastructure Growth Capital 105 NA

Bangalore International Airport Ltd Fairfax India Infrastructure Growth Capital 67 6

Kolkata Trump Tower project Xander Finance Real Estate Credit Investment 20 NA


Top Infrastructure and Real Estate Investments in March 2018

Page 26

Exits – US$705 million across 12 deals in March

Exits in March


124(1) 128(2)104(3)

345(5)

1(1)

IPO Buyback Strategic Secondary Open Market


2(4)

61(2)

104(1)

128(1)

140(2)

Others

Ecommerce

Media & Entertainment

Real Estate

Financial Services


Page 27

Exits – Top Exits

Company Sector Sellers Buyer Exit Type US$mStake (%)

Continental Warehousing Corporation (NhavaSheva) Ltd.

LogisticsWarburg Pincus, Aureos South Asia Fund, IFC

Hindustan InfralogPvt. Ltd. (DP world and NIIF JV)

Secondary 268 60

Lodha’s Palava township project

Real Estate Kotak Realty Lodha Buyback 129 NA

Bandhan Bank Ltd. Financial Services IFC,GIC NA IPO 125 NA

Saavn.comMedia & Entertainment

Tiger Global and others

Reliance Industries Ltd

Strategic 104 NA

Lenskart Solutions Pvt. Ltd.

Ecommerce IDG ,TPGTR Advisors Ltd. and PremjiInvest

Secondary 61 NA


Top Exits in March 2018

Page 28

Fund Raise


Status Fund US$m Strategy Remark

Raised Godrej Fund Management 600 Real Estate Final close of new fund

Raised SeaLink Capital 315 Sector agnostic Final close of first fund

Raised Lighthouse Fund 120 Sector agnostic Final close of third fund

Announced Quona Capital 150Fintech, Education, Healthcare

Third Fund

Top Fund Raise/Announcements in March 2018

Page 29

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Documents

How can you identify and evaluate right PE investment ... · Sanjay Ghodawat Group Xander Real Estate Buyout 54 100