While deal numbers shrink, value of PE flows up marginally in H1 of 2017

This, despite squeeze in start-up funding; $946 mn Bharti Infratel deal is biggest so far this year

At $6.57 billion, private equity flows remained steady during the first six months of 2017, slightly more than $6.54 billion raised in the same period last year, despite a squeeze in start-up funding.

Interestingly, the marginal growth in value was achieved in a lower number of deals compared to last year. According to data from research firm VCCEdge, $6.57 billion was invested in 445 deals in 2017, till June 23, as compared to $6.48 billion investment in 770 deals during the first half of year 2016.

Telecom saw the largest investment during the first half of 2017, while three out of the top five deals were in the banking, financial service and insurance sector.

KKR India Advisors and CPP Investment Board invested around $946.4 million in Bharti Infratel Ltd, leading the 2017 investments so far.

Warburg Pincus LLC, Clermont Group and IIFL Special Opportunities Fund invested $382.59 million in ICICI Lombard General Insurance, while Warburg Pincus India invested another $360 million into Tata Technologies Ltd, during the period.

Kotak Mahindra Bank Ltd raised $338.8 million from CPP Investment Board, Quebec Deposit and Investment Fund and Capital First Ltd has raised $275.41 million from GIC Pte Ltd.

This is also the second largest funding period in terms of value, compared to the first six months of the last five years, starting from 2013. The funding in the first six months seen a peak at $10.47 billion in 2015, in 827 deals. The whole year of 2015 attracted $21.96 billion in 1805 deals, which has been the highest between the year 2008 and 2016.

However, the exits during the first half of 2017, saw a decline of nine per cent to $3.29 billion in 120 deals, as compared to $3.62 billion in 130 deals during the first half of 2016.

The first six months of the year saw the $284.17 million stake sale by Khazanah Nasional Berhad in Apollo Hospitals Enterprises, followed by the $275.41 million sales by Warburg Pincus India Pvt Ltd from Capital First Ltd and $236.91 million by KKR India Advisors in Dalmia Bharat Ltd.

During the full year of 2016, there were 262 exits valued at $7.53 billion, which was the highest in terms of value, marking an increase from $5.93 billion exits in 305 deals during the year 2015.