PE Roundup June H2017 2Q2017 June 2017

Transcription

1 PE Roundup June H2017 2Q2017 June 2017

2 Headline Trends

3 Key trends Half Yearly Investments PE/VC investments in India in the first half (1H2017) witnessed sharp increase on the back of some very large deals with size of each of them in excess of USD 00 million. In 1H2017, investments increased 1% in value (US$ 11.2 billion Vs US$.0 billion in 1H2016) despite a.9% decline in volume (29 deals Vs 10 deals in 1H2016). Both buyout (US$2.2 billion across 1 deals) and PIPE (US$1.9 billion across 2 deals) deals recorded strong growth in 1H2017 of 76% and 72% respectively, the best half yearly performance for buyout deals and the second best for PIPE deals in over 10 years. In terms of number of deals, Buyouts have been sequentially increasing with a record high of 1 buyouts in 1H2017. Aggregate deal value was dominated by minority growth capital with 1% of the aggregate investments (US$.6 billion invested across 7 deals in 1H2017, a growth of % compared to 1H2016). Early stage / VC deals continued to dominate the deal volumes accounting for 0% of all deals in 1H2017 similar to last year. Also, 1H2017 saw significant activity from Canadian pension funds. In aggregate, they invested US$2.1 billion across six deals in Financial Services, Technology and Real Estate were the leading sectors in terms of investments in 1H2017. Exits Exits grew % by value in 1H2017 (US$. billion Vs US$.1 billion in 1H2016) and 0% by volume (129 deals Vs 6 deals in 1H2016), best half yearly performance since 2009, mainly driven by increase in open market and secondary divestments. IPO markets have been quite active as well with 6 PE backed IPOs in 1H2017 From a sector perspective Financial services (US$1.6 billion across 1 exits), Technology (US$1 billion across 1 exits) and Life sciences (US$76 million across 2 exits) were the top sectors for exits in 1H2017. Fund raise The first half of 2017 saw US$2 billion in fund raise, 0% decline compared to 1H2016, but a % increase over 2H2016. New fund raise plans announced also declined by 6% to US$ billion in 1H2017 compared to same period last year. However, there is plenty of liquidity in the market with global funds having greater allocations for India and keen to invest more in the country. Page

4 PE Half Yearly Roundup 1H2017

5 PE/VC headline trends Half Yearly US$ mn # Investments 12, , , ,000 7,11,9 11,06 7,96,2 11, H201 1H201 2H201 1H2016 2H2016 1H2017 Exits US$ mn # , ,000-2,072,910 2,6,10,2,09 2H201 1H201 2H201 1H2016 2H2016 1H Fund Raise US$ mn #, , ,79,0 2,610,017 1,296 2, H201 1H201 2H201 1H2016 2H2016 1H2017 Page

6 Investments H1 Analysis Total Investment US$m No. of Deals 1H ,20 1H H2016 7,96 1H Deal Type US$m Deal Size US$m Expansion/ Growth Capital,6, > $100m,10 7,27 Start-up/ Early Stage 1,7 1,00 $0m - $100m 1,70 1,6 PIPE Financing 1,900 1,10 $20m - $0m 1,000 1,12 Buyout 1,20 2,1 $10m - $20m Debt investment 9 1,212 < $10m 19 Deal Type # Deal Size # Expansion/ Growth Capital > $100m 22 1 Start-up/ Early Stage $0m - $100m 2 2 PIPE Financing 2 1 $20m - $0m Buyout 1 12 $10m - $20m Debt investment 29 < $10m ** Deal value not available on out of 29 deals in 1H2017 and 60 out of 10 deals in 1H Page 6

7 Investments H1 Sector Cut 1H2017 1H2016 Top Sectors US$m Top Sectors # Financial services 1,0,00 Technology Technology 1,2 1,91 Financial services 9 1 RHC 1,26 1,21 Ecommerce 26 Telecom - 1,012 Healthcare 1 20 Ecommerce 617 1,071 RHC 1 Healthcare RCP 17 1 Infrastructure 69 9 Logistics 7 1 Power and utilities 62 Infrastructure Logistics Power and utilities 2 RCP Telecom 2 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 7

8 Top Investments Top Investments in 1H2017 Company PE Investor Sector Stage US$mn Paytm SoftBank Financial services Expansion/ Growth Stake (%) 1,00 NA Bharti Infratel Ltd. KKR,CPPIB Telecommunications PIPE Financing GlobalLogic CPPIB Technology Expansion/ Growth IndoSpace CPPIB RHC Buyout 00 NA ICICI Lombard Warburg Pincus, Clermont Group, IIFL Special Opportunities Fund Financial services Tata Technologies Ltd Warburg Pincus Technology Expansion/ Growth Expansion/ Growth Kotak Mahindra Bank CPPIB, CDPQ Financial services PIPE Financing 2 1. Princeton Growth Ventures Warburg Pincus Technology Start-up/ Early Stage 00 NA Aegis Ltd Capital Square Technology Buyout Oyo Rooms SoftBank Ecommerce Start-up/ Early Stage Hindustan Powerprojects Macquarie Group Power and utilities Buyout Page

9 Exits H1 Analysis Total Exits US$m No. of Deals 1H2017,09 1H H2016,10 1H Open Market Secondary Strategic Buyback Exit Type US$m , 1,76 1,9 Financial Services Technology Healthcare Pharmaceuticals CBP Top Sectors US$m ,77 IPO 6 9 RHC Open Market Secondary Strategic Buyback IPO Exit Type # Financial Services Technology Healthcare Pharmaceuticals CBP RHC 2 2 Top Sectors # *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 9

10 Top Exits Top Exits in 1H2017 Company Sector Sellers Buyer Exit Type US$mn Stake (%) Globallogic Technology Apax CPPIB Secondary 720 ICICI Lombard General Insurance Company Ltd. Financial Services Fairfax Warburg Pincus LLC, Clermont Group, IIFL Secondary 12 Capital First Ltd Financial Services Warburg Pincus GIC & others Secondary 27 2 Dalmia Bharat Ltd. CBP KKR India NA Open Market 26 Eris Lifesciences Ltd. Pharmaceuticals ChrysCapital NA IPO Idea Cellular Ltd. Edelweiss Financial Services Ltd. Apollo Hospitals Telecommunication Providence Equity Partners LLC NA Open Market 199 Financial Services Carlyle NA Open Market 10 Healthcare Khazanah Nasional Berhad NA Open Market 129 Max Financial Services Financial Services Goldman Sachs NA Open Market IndusInd Bank Ltd. Financial Services Norwest NA Open Market 12 1 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 10

11 Fund Raise The first half of 2017 saw US$2 billion in fund raise, 0% decline compared to 1H2016, but a % increase over 2H2016 New fund raise plans announced also decreased by 6% to US$ billion in 1H2017 compared to same period last year. Top Fund Raise in 1H2017 Status Fund US$m Strategy Remark Raised ChrysCapital fund VII 600 Sector agnostic Seventh fund Raised Raised Edelweiss Special Opportunities Fund (ESOF) II ICICI Venture: India Advantage Fund Series (IAF) 0 sector agnostic Final close of second credit focused fund 160 Sector agnostic Final close of US$ 0m fund Raised KKR 17 Sector agnostic Credit focused fund Raised SPAC Constellation Alpha 1 Healthcare Fund raise through IPO Raised IDFC Alternatives 100 Sector agnostic First close of fourth fund Page 11

12 PE Quarterly Roundup 2Q2017

13 Key Trends - Quarterly On a quarterly basis, investments increased 9% in value (US$ 7.1 billion Vs US$.7 billion in 2Q2016) with number of deals remaining similar. The growth was driven by sharp increase of 10% and 1% in buyout and growth deals respectively. 2Q2017 demonstrated the best quarterly performance recorded by both buyout (US$1.9 billion across 11 deals) and growth (US$.1 billion across 7 deals) deals in over a decade. Quarterly comparison shows a 2.6X jump in exits (US$ 2. billion Vs US$ 1.1 billion in 2Q2016), driven by open market and secondary exits. There were PE backed IPOs in 2Q2017. From a sector perspective Financial services (US$1.1 billion across 17 exits) and Life sciences (US$6 million across 1 exits) were the top sectors for exits in 2Q2017. *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 1

14 PE/VC headline trends Quarterly US$ mn # 6,000,000 2, Investments ,792 2,69,1,0,19 6,00,0,10,6,097,1,229 7, Q201 Q201 Q201 1Q201 2Q201 Q201 Q201 1Q2016 2Q2016 Q2016 Q2016 1Q2017 2Q ,000 2,000 1,000-2,00 2,000 1,00 1, Exits ,01 1,161 2,79 1,20 1, 2,067 1,07 2,06 1, 2,0 2,776 2Q201 Q201 Q201 1Q201 2Q201 Q201 Q201 1Q2016 2Q2016 Q2016 Q2016 1Q2017 2Q2017 Fund Raise , ,279 1,92 1,9 1,2 1,2 2, , Q201 Q201 Q201 1Q201 2Q201 Q201 Q201 1Q2016 2Q2016 Q2016 Q2016 1Q2017 2Q Page 1

15 Investments Q2 Analysis Total Investment US$m No. of Deals 2Q2017 7,0 2Q Q2016,6 2Q Expansion/ Growth Capital Deal Type US$m 1,,1 > $100m Deal Size US$m 1,79,7 Start-up/ Early Stage $0m - $100m PIPE Financing $20m - $0m 2 67 Buyout 92 1, $10m - $20m Debt investment < $10m 0 26 Deal Type # Deal Size # Expansion/ Growth Capital 7 0 > $100m 16 Start-up/ Early Stage 1 $0m - $100m 12 PIPE Financing $20m - $0m 1 21 Buyout 11 $10m - $20m Debt investment < $10m ** Deal value not available on 1 out of 16 deals in 2Q2017 and 6 out of 16 deals in 2Q *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 1

16 Investments Q2 Sector Cut 2Q2017 2Q2016 Top Sectors US$m Top Sectors # Financial services 2, Technology 9 Technology 1,0 Financial services 1 RHC 1,002 Ecommerce 1 2 Ecommerce 2 Healthcare 7 1 Power and utilities 0 RCP 12 Infrastructure 1 RHC Pharmaceuticals 219 Business and Prof Ser 7 RCP 126 Pharmaceuticals Business and Prof Ser 11 Infrastructure Healthcare 10 Power and utilities 2 1 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 16

17 Top Investments Top Investments in 2Q2017 Company PE Investor Sector Stage US$mn Stake (%) Paytm SoftBank Financial services Expansion/ Growth 1,00 NA IndoSpace CPPIB RHC Buyout 00 NA ICICI Lombard Warburg Pincus, Clermont Group, IIFL Special Opportunities Fund Financial services Expansion/ Growth 12.2 Tata Technologies Ltd Warburg Pincus Technology Expansion/ Growth 60.0 Princeton Growth Ventures Warburg Pincus Technology Start-up/ Early Stage 00 NA Aegis Ltd Capital Square Technology Buyout Oyo Rooms SoftBank Ecommerce Start-up/ Early Stage Hindustan Powerprojects Macquarie Group Power and utilities Buyout Religare Health Insurance True North, Faering Capital Financial services Buyout Bangalore International Airport Ltd. Fairfax Infrastructure Buyout Shriram Properties and Infrastructure Pvt. Ltd., Information Technology Special Economic Zone Xander Finance RHC Buyout Page 17

18 Exits Q2 Analysis Total Exits US$m No. of Exits 2Q2017 2,776 2Q Q2016 1,07 2Q2016 Open Market Exit Type US$m 67 1,0 Financial Services Top Sectors US$m 1,0 Secondary Strategic Buyback IPO Open Market Exit Type # Pharmaceuticals CBP Healthcare Technology Industrial products Financial Services Top Sectors # 17 Secondary 1 Pharmaceuticals 1 Strategic Buyback IPO 11 1 CBP Healthcare Technology Industrial products *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 1

19 Top Exits Top Exits in 2Q2017 Company Sector Sellers Buyer Exit Type US$mn Stake (%) ICICI Lombard General Insurance Company Ltd. Financial Services Fairfax Warburg Pincus LLC, Clermont Group, IIFL Secondary 12 Capital First Ltd Financial Services Warburg Pincus GIC & others Secondary 27 2 Dalmia Bharat Ltd. Cement and building products KKR NA Open Market 26 Eris Lifesciences Ltd. Pharmaceuticals ChrysCapital NA IPO Apollo Hospitals Healthcare Khazanah NA Open Market 129 ItzCash Card Ltd Financial Services Intel Capital, Matrix, Lightspeed Ebix Inc Strategic 12 0 Max Financial Services Financial Services Goldman Sachs NA Open Market 12 Tata Technologies Ltd Technology Tata Capital Warburg Pincus Secondary Intas Pharmaceuticals Pharmaceuticals ChrysCapital Capital International Secondary 106 Mphasis Ltd Technology Blackstone Mphasis Ltd Buyback 99 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 19

20 Fund Raise On a quarterly basis, fund raise declined 2% to US$ 719 million compared to US$92 million last year. Top Fund Raise in 2Q2017 Status Fund US$m Strategy Remark Raised Edelweiss Special Opportunities Fund (ESOF) II 0 Sector agnostic Final close of second credit fund Raised SPAC Constellation Alpha 1 Healthcare Fund raise through IPO Raised CapAleph 70 Sector agnostic First close Raised Kotak Realty 0 Real Estate For affordable hosing Raised IAN 27 Sector-agnostic Early stage / Angel investing Page 20

21 PE Monthly Roundup June 2017

22 PE/VC headline trends Monthly US$ mn # Investments, , , , ,007 1,21 1,1 927,026 1, ,61 1,920,7 1, Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 1,00 1, Exits , , 0 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Fund Raise Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun Page 22

23 Key Trends From a monthly perspective, at US$1. billion, June 2017 recorded a sharp increase of 1% compared to US$60 million in June 2016 despite a 6% decline in number of deals ( deals vs 70 deals in June 2016), mainly on account of five large US$100 million and above deals accounting for 71% of aggregate deal value. June 2017, however, did not record any PIPE deals. When compared to the previous month, June 2017 investments declined by 6% in value terms. May 2017 witnessed Softbank s US$1. billion investment in Paytm, which is the largest deal in the Financial Services sector in India ever. In volume terms, investments declined 20% compared to the previous month. Technology (US$70 million across 1 deals) and Financial Services (US$200 million across 12 deals) were the top sectors for the month. June 2017 recorded % increase in value of exits compared to same period last year (US$0m across 12 exits vs US$09m across 1 exits in June 2016). However, on a month-on-month basis, there was a sharp decline of over 0% in both value and volume terms. *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 2

24 Investments US$1. bn over deals Value US$ million Volume Technology Financial services Infrastructure RHC Logistics Pharmaceuticals Ecommerce Business and Prof Ser Food and Agriculture Healthcare RCP Technology Financial services RHC Ecommerce RCP Business and Prof Ser Infrastructure Logistics Pharmaceuticals Food and Agriculture Healthcare Deal Size US$ mn (Volume) Deal Stage US$ mn (Volume) 1069 () 61 () 19 (1) 66 (20) 9 () 112 () 200 () NA (0) 199 (1) 27 () <$10Mn $10Mn - $20Mn $20Mn - $0Mn $0Mn - $100Mn >$100Mn Expansion/ Growth Start-up/ Early Stage PIPE Buyout Debt ** Deal value not available on 10 out of deals in June 2017 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 2

25 Investments Monthly sector cut Investment by Sector US$mn Jun May , Apr Mar Feb ,000 1,00 2,000 2,00,000,00 Investment by Sector No. of Deals Jun May Apr Mar Feb Ecommerce RHC Financial Services Technology Telecom RCP Automotive Power & Utilities Others Education *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 2

26 Investments Monthly (deal size and type) Deal Size Trend - Value (US$ mn) Deal Type Trend - Value Jun 200 1,069 Jun May ,192 May 1, Apr ,19 Apr Mar ,607 Mar , Feb 10 Feb 9 Deal Size Trend - No of Deals Deal Type Trend - No of Deals Jun Jun 1 1 May May Apr Apr Mar Mar Feb Feb 17 1 <$10Mn $10Mn - $20Mn $20Mn - $0Mn $0Mn - $100Mn >$100Mn NA Expansion/ Growth Capital PIPE Financing Debt investment Start-up/ Early Stage Buyout Page 26

27 Top Investments Top Investments in June 2017 Company PE Investor Sector Stage US$mn Stake (%) Tata Technologies Ltd Warburg Pincus Technology Expansion/ Growth 60.0 Princeton Growth Ventures Warburg Pincus Technology Start-up/ Early Stage 00 NA Bangalore International Airport Ltd. Fairfax Infrastructure Buyout Aditya Birla Capital PremjiInvest Financial services Expansion/ Growth Embassy Group Piramal Finance Real Estate, Hospitality & Construction Debt 100 NA Apollo LogiSolutions Ltd. Piramal Finance Logistics Expansion/ Growth 7 NA Strides Shasun Ltd. KKR Pharmaceuticals Debt 7 NA Mahagun Real Estate Pvt. Ltd. Piramal Finance Real Estate, Hospitality & Construction Debt 0 NA ANI Technologies Pvt. Ltd(Ola Cabs) Tekne Capital Ecommerce Expansion/ Growth 0 NA Mswipe Technologies Pvt. Ltd Matrix, DSG Consumer Partners, Falcon Edge Capital, UC-RNT Fund Financial services Start-up/ Early Stage 1 NA Page 27

28 Exits US$0 bn across 12 deals in June Exits in June Exits by Sector US$mn (Volume) 27 (2) Exits by Type US$mn (Volume) Technology 2 () Pharmaceuticals 217 (2) 1 () RHC 6 (2) 119 (2) Financial Services 1 (1) Healthcare 11 (2) 7 () NA (1) Industrial products (1) IPO Buyback Strategic Secondary Sale Open Market *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 2

29 Exits Top Exits Top Exits in June 2017 Company Sector Sellers Buyer Exit Type US$mn Stake (%) Eris Lifesciences Ltd. Pharmaceuticals ChrysCapital NA IPO Tata Technologies Ltd Technology Tata Capital Warburg Pincus LLC Secondary Mphasis Ltd Technology Blackstone Mphasis Ltd Buyback 99 Indiabulls Infraestate Ltd. RHC IL&FS India Tejas Networks Technology Cascade Capital, India Industrial Growth Fund, Intel Capital and others Indiabulls Real Estate Ltd. Buyback 10 NA IPO 7 11 Natco Pharma Ltd. Pharmaceuticals CX Capital NA Open Market 17 1 Equitas Holdings Ltd. Financial Services Creation NA Open Market 1 1 Quality Needles Pvt. Ltd. Healthcare CX Partners TPG Secondary 11 Welspun Enterprises Industrial products Apollo Management NA Open Market 6 Sinclair Hotels RHC The Xander Group NA Open Market 1 6 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 29

30 Fund Raise Top Fund Raise/Announcements in June 2017 Status Fund US$m Strategy Remark Raised SPAC Constellation Alpha 1 Healthcare Fund raise through IPO Raised Kotak Realty 0 Real Estate For affordable hosing Raised IAN 27 Sector-agnostic Early stage / Angel rounds Announced Tata Capital 1,000 Healthcare Three funds Announced Ascendas-Singbridge 00 Real Estate Page 0

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