 "PE investments surge this year")
PE entities in the quarter ended September invested a record $5.89 million across 177 deals, up 125 per cent over $2.62 bn in the same period last year, in 126 transactions. There were 16 PE investments in the quarter worth $100 million or more, with seven beyond $200 mn, compared to three such transactions in the same period last year and 11 during the immediate previous quarter.
All figures from the research firm are exclusive of PE investments in real estate, and strategic investments from entities like Alibaba. Internet majors Flipkart, Snapdeal and Ola raised $700 mn, $500 mn and $245 mn, respectively. Other large PE investments in the quarter included $500 mn by TA Associates and India Value Fund in ACT Broadband, Blackstone’s $383 mn repurchase of BPO firm Intelenet and Bain Capital’s $200 mn infusion in publicly listed non-bank financial services firm L&T Finance.
Information technology and IT-enabled services companies took 57 per cent of the PE investment by value, attracting $3.36 mn across 107 deals in the September quarter. Other internet companies that attracted $100 mn rounds included music service Saavn.com, furniture e-tailer Pepperfry.com and hotels aggregator Oyo Rooms. According to reports, Tata Capital has committed a similar amount as part of US-based taxi hailing app firm Uber's latest fund raise. Venture Intelligence says energy companies became the second largest segment, attracting investment of $549 mn across seven transactions. Led by the GIC-Greenko Group deal of $256 mn and the $150 mn deal of I Squared Capital and Amplus Energy.
Buyouts grew
In the quarter, growth capital investments in unlisted companies were 68 per cent of the total. And, buyout-type investments rose, being 26 per cent of all investments in value terms during the three months, at $1.5 bn in 11 investments.
The ACT, Intelenet and Greenko deals were followed by the Fairfax Group’s buyout of a 74 per cent stake in agricultural logistics firm National Collateral Management Services for Rs 800 crore ($126 mn) and ChrysCapital’s $63 mn buyout of US-based IT services firm Infogain.
Even with the deal between Bain Capital and L&T Finance, the PE investments in listed companies, at eight investments worth $341 mn, accounted for only six per cent of the investment pie by value. The segment also saw KKR Special Situations Fund investing Rs 491 crore ($77 mn) in polyester yarn maker JBF Industries.
StanChart PE, Apax Partners and Temasek acquired additional shares in existing listed portfolio companies of Prime Focus, Shriram City Union Finance and Justdial, respectively, via the public markets, added the Venture Intelligence report.
