PE/VC investments touch $3bn in November driven by big ticket deals

Published On: 11, Dec 2017 | Source: moneycontrol.com

Private equity and venture capital (PE/VC) investments touched USD 2.9 billion across 56 deals in November, driven by big ticket transactions and the momentum is likely to continue further, says an EY report.

According to the report, PE/VC investments touched USD 0.9 billion across 41 deals in November 2016.

Month-on-month, there was an increase of 40 per cent in value while number of deals remained the same.

This increase in PE/VC investments was driven by high number of large value deals. November recorded 10 deals with value greater than USD 100 million (highest number for any given month ever) aggregating USD 2.3 billion.

So far this year, there were 54 large deals aggregating USD 18.2 billion mainly due to increasing exposure of big bracket pension funds, sovereign wealth funds and global buyout funds in India, the report said.

Canada Pension Plan Investment Board (CPPIB) with its USD 350 million investment in ReNew Power and Abu Dhabi Investment Authority (ADIA) investing USD 300 million in Cube Highways were among the top deals in November.

The report further said November recorded the highest value of exits ever for any given month, 25 exits worth USD 2.7 billion.

The largest open market exit was that of Qatar Foundation Endowment selling 5 per cent stake in Bharti Airtel for USD 1.5 billion.

Moreover, there were two PE-backed IPO in November which saw Kedaara selling 13.6 per cent stake in Mahindra Logistics for USD 65 million and Reliance Alternative Investment Fund selling 33 per cent stake in Khadim for USD 68 million.

"As projected earlier, November has been a stellar month for investments as well as exits and we expect strong traction in December as well. 2017 has been the best year for Indian private equity," said Vivek Soni, Partner and Leader for Private Equity Services, EY.