PE Yearly Roundup – 2017FILE/… · Global Logic CPPIB Technology Expansion/ Growth Capital 720 48 ... Startup/Early Stage 400 NA ICICI Lombard General Insurance Warburg Pincus,

PE Yearly Roundup – 2017

Page 2

Key trends – Yearly

► Investments

► PE/VC investments in India in 2017 witnessed sharp increase on the back of some very large deals (19 deals) with size of each of them in excess of USD 300 million including four deals of value US$ 1 billion and above.

► In 2017, investments increased by 65% in value terms compared to 2016 (US$ 26.8 billion Vs US$ 16.2 billion in 2016) with deal volume remaining at similar levels (589 deals compared to 588 deals in 2016).

► Growth, startup and PIPE deals witnessed multifold increase in investment flow in 2017 compared to last year. 2017 was the best year for growth deals ever at US$13.8 billion (2.4 times the value recorded in 2016). This was primarily driven by four mega deals accounting for 46% of the value of growth deals, three involving Softbank’s investments in the Indian ecommerce and fintech space and another involving GIC’s investment in DLF, details of which are given in subsequent slides. Startup/Early stage investments at US$3.5 billion across 311 deals recorded a 1.7 times increase in deal value compared to 2016 and PIPE deals at US$3.7 billion across 38 deals, recorded a 2.4 times increase in deal value over the same period. In comparison, debt and buyout deals had a rather muted performance in 2017, recording a 19% and 14% decline in deal value respectively compared to 2016. 2017 recorded US$3.4 billion in buyouts across 26 deals and US$2.4 billion in debt investments across 55 deals.

► Ecommerce on the back of mega investments by Softbank (US$4.8 billion across 63 deals), Financial Services (US$7.1 billion across 103 deals), and Real Estate (US$4.8 billion across 50 deals) were the leading sectors in terms of investment value in 2017. In terms of number of deals Technology was the top sector with 125 deals.

EY Analysis of VCCEdge Data

Page 3

Key trends – Yearly

► Exits

► 2017 was the best year ever for exits in terms of both value and volume. The aggregate deal value for PE exits in 2017 of US$13 billion is almost twice that of the previous high of US$6.7 billion achieved in 2016. The sharp rise was driven by a 3.7 fold increase in open market exits compared to 2016 (US$6.2 billion vs US$1.7 billion in 2016), on the back of buoyant capital markets. Similar increase was seen in PE backed IPOs (US$1.8 billion vs US$913 million in 2016). 2017 was the best year for PE backed IPO’s which saw one of the biggest exit via an IPO by a PE fund, that of Fairfax’s US$558 million exit from ICICI Lombard.

► Strategic exits on the other hand recorded a significant decline with US$881 million recorded across 42 deals in 2017 compared to US$2.7 billion recorded across 55 deals in 2016.

► From a sector perspective Financial services (US$3.9 billion across 51 exits), Telecom (US$1.9 billion across 3 exits), Ecommerce (US$1 billion across 8 exits) and Technology (US$1.5 billion across 24 exits) were the top sectors for PE exits in 2017.

► Fund raise

► 2017 saw US$4.9 billion in fund raise, 15% higher than the levels seen in 2016. Kedaara’s US$750

million and Chrys Capital’s US$600 million sector agnostic fund raises were the largest in 2017.

► New fund raise plans announced declined by 43% to US$ 12.2 billion in 2017 compared to 2016, which had seen very large announcements made by the Government of India.


Page 4

PE/VC headline trends – Yearly

US$ mn #

3,444 3,533 3,395 6,474 6,668 13,075

115 125166

254209

257

0

100

200

300

-

2,000

4,000

2012 2013 2014 2015 2016 2017

Exits

3,871 2,248 3,609 6,440 4,313 4,946

3226 29

3641 41

0

10

20

30

40

50

-

2,000

4,000

2012 2013 2014 2015 2016 2017

Fund Raise

US$ mn #

US$ mn #

7,546 9,116 11,683 19,635 16,203 26,804

416 392470

767

588 589

0

200

400

600

800

1000

-

3,000

6,000

9,000

12,000

2012 2013 2014 2015 2016 2017

Investments


Page 5

65

29

34

300

160

55

26

38

311

159

Debt investment

Buyout

PIPE Financing

Start-up/ Early Stage

Expansion/ GrowthCapital

Deal Type #

Investments – Analysis

** Deal value not available on 99 out of 589 deals in 2017 and 104 out of 588 deals in 2016

16,203

26,804

2016

2017

Total Investment US$m

2,912

3,940

1,551

2,112

5,689

2,360

3,406

3,721

3,515

13,801

Debt investment

Buyout

PIPE Financing

Start-up/ Early Stage

Expansion/ GrowthCapital

Deal Type US$m

921

1,025

2,467

3,670

8,120

1,048

1,044

2,057

3,100

19,555

< $10m

$10m - $20m

$20m - $50m

$50m - $100m

> $100m

Deal Size US$m

253

68

77

53

33

260

68

62

44

56

< $10m

$10m - $20m

$20m - $50m

$50m - $100m

> $100m

Deal Size #

588

589

2016

2017

No. of Deals


Page 6

Investments – Sector Cut

*** RCP – Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP – Cement & Building Products

2,495

3,178

1,508

1,985

470

640

636

1,642

681

536

7,101

4,794

4,762

2,147

1,325

1,044

1,023

1,012

971

893

Financial services

RHC

Ecommerce

Technology

Power and utilities

Healthcare

RCP

Telecom

Infrastructure

Logistics

Top Sectors US$m2017 2016

114

72

91

70

27

28

35

20

24

7

125

103

63

50

46

37

37

22

20

17

Technology

Financial services

Ecommerce

RHC

Food and Agri

RCP

Healthcare

Logistics

Education

Business and Prof Serv

Top Sectors #


Page 7

Top Investments

Top Investments in 2017

Company PE Investor Sector Stage US$mnStake

(%)

Flipkart SoftBank EcommerceExpansion/ Growth Capital

2,500 30

Paytm SoftBank Financial servicesExpansion/ Growth Capital

1,400 NA

DLF Cyber City Developers Ltd GIC RHCExpansion/ Growth Capital

1,390 33

ANI Technologies (Ola Cabs) Tencent, Softbank EcommerceExpansion/ Growth Capital

1,100 NA

Bharti Infratel Ltd KKRm, CPPIB Telecom PIPE Financing 956 10

Axis Bank Ltd. Bain Capital LLC Financial services PIPE Financing 795 3.7

Global Logic CPPIB TechnologyExpansion/ Growth Capital

720 48

Indospace CPPIB RHC Buyout 500 NA

Logos India CDPQ LogisticsStartup/Early Stage

400 NA

ICICI Lombard General InsuranceWarburg Pincus, IIFL, Clermont

Financial servicesExpansion/ Growth Capital

383 12.2

TATA Technologies Warburg Pincus TechnologyExpansion/ Growth Capital

360 43


Page 8

Exits – Analysis


6,668

13,075

2016

2017

Total Exits US$m

209

257

2016

2017

No. of Deals

763

313

70

735

269

1,268

807

878

980

1,519

1,930

3,863

RHC

Healthcare

Ecommerce

Technology

Telecom

FinancialServices

Top Sectors US$m

19

16

7

27

3

34

27

27

8

24

3

51

RHC

Healthcare

Ecommerce

Technology

Telecom

FinancialServices

Top Sectors #

913

831

2,714

533

1,677

1,788

753

881

3,462

6,191

IPO

Buyback

Strategic

Secondary

Open Market

Exit Type US$m

17

23

55

23

91

19

25

42

45

126

IPO

Buyback

Strategic

Secondary

Open Market

Exit Type #


Page 9

Top Exits

Top Exits in 2017


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

Bharti Airtel Ltd. TelecommunicationQatar Foundation Endowment

NA Open Market 1485 5

Flipkart Pvt Ltd. Ecommerce Tiger Global SoftBank Secondary 800 NA

Global Logic Technology Apax CPPIB Secondary 720 48

ICICI Lombard General Insurance Company Ltd

Financial Services Fairfax NA IPO 558 12

Max Group (Max Ventures and Industries Ltd. & Max Financial )

Financial ServicesGoldman Sachs and others

NA Open Market 511 16

ICICI Lombard General Insurance Company Ltd

Financial Services Fairfax Warburg Pincus Secondary 383 12

Max Financial Services Ltd.

Financial Services Goldman Sachs NA Open Market 358 15

Genpact Ltd. Technology Bain Capital, GIC NA Open Market 294 5

Mytrah Energy India Pvt. Ltd.

Power & UtilitiesApollo Global, Aion,and others

Piramal, APG Secondary 270 NA

Tikona Digital Networks Pvt. Ltd., 4G Business

TelecommunicationIFC, Goldman Sachs and others

Bharti Airtel Ltd.

Strategic 246 NA


Page 10

Fund Raise

Top Fund Raise in 2017

Status Fund US$m Strategy Remark

Raised Kedaara 750 Sector agnostic Second fund

Raised Chrys Capital 600 Sector agnostic Seventh fund

Raised HDFC Capital 550 Real Estate Final close of second fund

Raised Morgan Stanley 450 Infrastructure Final close of US$ 1 bn fund

Raised SAIF 350 Sector agnostic Final close of third fund

Raised Edelweiss Opportunities Fund 350 Sector agnostic Second credit focused fund


PE Roundup – December 2017

Page 12

PE/VC headline trends – Monthly

US$ mn #

646 880 602 550 843 1,383 564 352 2,154 2,044 623 2,725 354

25

15

24 22

32

24

148

32

24

17

2520

0

10

20

30

40

-

1,000

2,000

3,000

Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

Exits

191 331 850 106 377 200 232 436 110 1689 31 675 828

4 4 43

23

43

2

8

2

6

3

0

2

4

6

8

10

0

500

1000

1500

2000


Fund Raise

3,026 1,176 393 2,610 1,920 3,447 1,207 1,468 5,424 1,795 2,095 2,885 2,384

56

4230

5766

5644 42

50 4655 56

45

0

20

40

60

80

-

2,000

4,000

6,000


Investments


Page 13

Key Trends

► From a monthly perspective, at US$2.4 billion deal value, Dec 2017 recorded a decline of 21% compared to US$3 billion in Dec 2016 and a 20% decline in number of deals (45 deals vs 56 deals in Dec 2016).

► When compared to the previous month, investments in Dec 2017 declined by 17% in value terms and 20% in terms of volume. Expansion and growth investments accounted for almost 50% of deal value in December 2017 with US$1.2 billion recorded across 13 deals. Bain Capital’s US$795 million investment in Axis Bank for a 3.7% stake was the largest deal in December 2017, followed by Warburg Pincus’ US$350 million investment in Bharti Telemedia for a 20% stake and Carlyle’s US$325 million investment in SBI cards for 26% stake.

► Financial Services (US$1.3 billion across 10 deals) and Media & Entertainment (US$223 million across 2 deals) were the top sectors for the month.

► December 2017 recorded 45% decline in value of exits compared to same period last year (US$354 million across 20 exits vs US$646 million across 25 exits in Dec 2016). On a month-on-month basis, there was a sharp decline of over 87% in terms of value and 20% in terms of volume, this was on account of a large US$1.5 billion exit by Qatar Foundation Endowment from Bharti Airtel in November 2017.



Page 14

113 (23) 102 (6)194 (6)

306 (4)

1666 (4)

<$10Mn $10Mn -$20Mn

$20Mn -$50Mn

$50Mn -$100Mn

>$100Mn

Deal Size US$ mn (Volume)

Investments


** Deal value not available on 10 out of 45 deals in Dec 2017

7

10

17

56

60

69

223

279

355

1308

Healthcare

RCP

Education

Food and Agriculture

Power and utilities

Ecommerce

Technology

RHC

Media & Entertainment

Financial services

Value US$ million

1

1

2

2

2

3

5

6

10

13

Power and utilities

RCP

Media & Entertainment

Healthcare

Education

RHC

Ecommerce

Food and Agriculture

Financial services

Technology

Volume

1176 (13)

323 (27)

795 (1)

NA (0)89 (4)

Expansion/Growth

Start-up/Early Stage

PIPE Buyout Debt

Deal Stage US$ mn (Volume)


Page 15

Investments – Monthly sector cut


2509

1222

69

1640

230

322

684

279

772

226

46

993

1,308

125

17

341

223

300

0

-

91

359

126

427

0 1000 2000 3000 4000 5000 6000

Aug

Sep

Oct

Nov

Dec

Investment by Sector – US$mn

4

5

10

4

7

6

4

7

9

8

10

8

10

9

7

6

6

10

14

6

3

5

4

3

2

16

10

14

10

6

- 10 20 30 40 50 60

Aug

Sep

Oct

Nov

Dec

Investment by Sector – No. of Deals

Ecommerce RHC Financial Services Technology Infrastructure RCP Automotive Power & Utilities Others Healthcare


Page 16

Investments – Monthly (deal size and type)

206

310

133

330

306

4,716

1,302

1,654

2,310

1,667

Aug

Sep

Oct

Nov

Dec

Deal Size Trend - Value (US$ mn)

14

15

38

16

23

2

9

4

7

6

9

6

2

5

6

5

2

2

5

4

6

7

3

10

4

10

39

7

13

2

Aug

Sep

Oct

Nov

Dec

Deal Size Trend - No of Deals

<$10Mn $10Mn - $20Mn $20Mn - $50Mn

$50Mn - $100Mn >$100Mn NA

693

1,396

971

1,177

150

435

505

795

323 795

300

300

-

316

103

482

89

Aug

Sep

Oct

Nov

Dec

Deal Type Trend - Value

16

16

13

12

13

21

23

34

32

27

4

2

4

2

1

2

2

1

1

0

3

3

4

9

4

Aug

Sep

Oct

Nov

Dec

Deal Type Trend - No of Deals

Expansion/ Growth Capital Start-up/ Early StagePIPE Financing BuyoutDebt deal


Page 17

Top Investments

Top Investments in Dec 2017

Company PE Investor Sector Stage US$mnStake

(%)

Axis Bank Ltd. Bain Capital LLCFinancial services

PIPE Financing 795 3.7

Bharti Telemedia Ltd. Warburg PincusMedia & Entertainment

Expansion/ Growth Capital

350 20

SBI Cards and Payment Services Pvt. Ltd.

CarlyleFinancial services


325 26

Phoenix Group Altico Capital Real Estate, Hospitality & Construction


196 NA

KKR India Financial Services Pvt. Ltd.

Abu Dhabi Investment Council

Financial services


100 NA

Nazara Technologies Ltd. IIFL and others TechnologyExpansion/ Growth Capital

79 NA

Supertech Ltd., Capetown Project Altico Capital RHC Debt Financing 67 NA

Greenlight Planet Apis Fund Power and utilities


60 NA

NestAway UT-RNT Fund EcommerceStartup/Early Stage

50 NA

H2O.ai Nexus and others TechnologyStartup/Early Stage

40 NA


Page 18

Exits


Exits in Dec 2017

23 (4)

18 (3)

43 (4)

59 (2)

61 (4)

67 (2)

Others

Food and agriculture

RCP

Technology

RHC

Infra

Exits by Sector US$mn (Volume)

80 (1)

63 (3)

NA (2)

85 (4)

124 (10)

IPO Buyback Strategic SecondarySale

Open Market

Exits by Type US$mn (Volume)


Page 19

Exits – Top Exits

Top Exits in Dec 2017


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

Future Supply Chain Solutions Ltd.

Logistics SSG Capital NA IPO 81 20

Sadbhav Infrastructure Project Ltd.

Infrastructure Xander Group NA Open Market 60 8

Nazara Technologies Ltd. TechnologyWestBridge Capital

IIFL Asset Management and others

Secondary 52 25

Prestige Projects Pvt. Ltd.

RHCRising Straits Capital

Prestige Estates Projects Ltd.

Buyback 51 67

Blue Star Ltd. RCP SAIF Partners NA Open Market 22 2

Olive Bar & Kitchen Private Ltd.

Food and agriculture

Aditya Birla PEIndia AgriBusiness Fund II

Secondary 16 40

Fermenta Biotech Ltd. HealthcareEvolvence India Life Sciences Fund

Dil Ltd. Buyback 13 21

Ashiana Housing Ltd RHCWestBridge Capital

(blank) Open Market 7 3

Specsmakers Opticians Pvt. Ltd.

RCPFulcrum Venture India Fund II

Eight Roads Ventures, AtmaRam Family Office

Secondary 10 NA

Just Dial Ltd Ecommerce Sequoia Capital NA Open Market 8 2


Page 20

Fund Raise

Top Fund Raise/Announcements in Dec 2017

Status Fund US$m Strategy Remark

Raised HDFC Capital 550 Real Estate First close of second fund

Raised Lighthouse 200 Sector-agnostic Third Fund

RaisedEdelweiss Real Estate Opportunities Fund

78 Sector-agnostic Final Close

Announced Fairfax 1,500 Sector-agnostic Three funds

Announced CG Group 200 Sector-agnostic India-focused distressed assets fund


Page 21

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Documents

PE Yearly Roundup – 2017FILE/… · Global Logic CPPIB Technology Expansion/ Growth Capital 720 48 ... Startup/Early Stage 400 NA ICICI Lombard General Insurance Warburg Pincus,