PE Yearly Roundup 017
Key trends Yearly Investments PE/VC investments in India in 017 witnessed sharp increase on the back of some very large deals (19 deals) with size of each of them in excess of USD 00 million including four deals of value US$ 1 billion and above. In 017, investments increased by 5% in value terms compared to 01 (US$.8 billion Vs US$ 1. billion in 01) with deal volume remaining at similar levels (589 deals compared to 588 deals in 01). Growth, startup and PIPE deals witnessed multifold increase in investment flow in 017 compared to last year. 017 was the best year for growth deals ever at US$1.8 billion (. times the value recorded in 01). This was primarily driven by four mega deals accounting for % of the value of growth deals, three involving Softbank s investments in the Indian ecommerce and fintech space and another involving GIC s investment in DLF, details of which are given in subsequent slides. Startup/Early stage investments at US$.5 billion across 11 deals recorded a 1.7 times increase in deal value compared to 01 and PIPE deals at US$.7 billion across 8 deals, recorded a. times increase in deal value over the same period. In comparison, debt and buyout deals had a rather muted performance in 017, recording a 19% and 1% decline in deal value respectively compared to 01. 017 recorded US$. billion in buyouts across deals and US$. billion in debt investments across 55 deals. Ecommerce on the back of mega investments by Softbank (US$.8 billion across deals), Financial Services (US$7.1 billion across deals), and Real Estate (US$.8 billion across 50 deals) were the leading sectors in terms of investment value in 017. In terms of number of deals Technology was the top sector with 15 deals. Page
Key trends Yearly Exits 017 was the best year ever for exits in terms of both value and volume. The aggregate deal value for PE exits in 017 of US$1 billion is almost twice that of the previous high of US$.7 billion achieved in 01. The sharp rise was driven by a.7 fold increase in open market exits compared to 01 (US$. billion vs US$1.7 billion in 01), on the back of buoyant capital markets. Similar increase was seen in PE backed IPOs (US$1.8 billion vs US$91 million in 01). 017 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$881 million recorded across deals in 017 compared to US$.7 billion recorded across 55 deals in 01. From a sector perspective Financial services (US$.9 billion across 51 exits), Telecom (US$1.9 billion across exits), Ecommerce (US$1 billion across 8 exits) and Technology (US$1.5 billion across exits) were the top sectors for PE exits in 017. Fund raise 017 saw US$.9 billion in fund raise, 15% higher than the levels seen in 01. Kedaara s US$750 million and Chrys Capital s US$00 million sector agnostic fund raises were the largest in 017. New fund raise plans announced declined by % to US$ 1. billion in 017 compared to 01, which had seen very large announcements made by the Government of India. Page
PE/VC headline trends Yearly US$ mn # 1,000 9,000,000,000,000,000 - - -,000,000 1 9 115 15 1 Exits,,5,95,7,8 1,075 01 01 01 015 01 017 70 9 Investments 7,5 9,11 11,8 19,5 1,0,80 US$ mn # Fund Raise US$ mn #,871,8,09,0,1,9 5 09 57 1 1 01 01 01 015 01 017 77 588 589 01 01 01 015 01 017 00 800 00 00 00 0 00 00 0 0 50 0 0 0 0 Page
Investments Analysis Total Investment US$m No. of Deals 017,80 017 589 01 1,0 01 588 Deal Type US$m Deal Size US$m Growth Capital 5,89 1,801 > $0m 8,10 19,555 Start-up/ Early Stage,515,11 $50m - $0m,0,70 PIPE Financing,71 1,551 $0m - $50m,057,7 Buyout,0,90 $m - $0m 1,0 1,05 Debt investment,0,91 < $m 1,08 91 Deal Type # Deal Size # Growth Capital 159 10 > $0m 5 Start-up/ Early Stage 11 00 $50m - $0m 5 PIPE Financing 8 $0m - $50m Buyout 9 $m - $0m Debt investment 55 5 < $m ** Deal value not available on 99 out of 589 deals in 017 and out of 588 deals in 01 77 8 8 0 5 Page 5
Investments Sector Cut 017 01 Top Sectors US$m Top Sectors # Logistics 89 5 Business and Prof Serv 7 17 Infrastructure 971 81 Education 0 Telecom 1,01 1, Logistics 0 RCP 1,0 Healthcare 7 5 Healthcare 1,0 0 RCP 8 7 Power and utilities 70 1,5 Food and Agri 7 Technology,17 1,985 RHC 50 70 Ecommerce 1,508,7 Ecommerce 91 RHC,178,79 Financial services 7 Financial services,95 7,1 Technology 15 11 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page
Top Investments Top Investments in 017 Company PE Investor Sector Stage US$mn Flipkart SoftBank Ecommerce Paytm SoftBank Financial services DLF Cyber City Developers Ltd GIC RHC ANI Technologies (Ola Cabs) Tencent, Softbank Ecommerce Stake (%),500 0 1,00 NA 1,90 1,0 NA Bharti Infratel Ltd KKRm, CPPIB Telecom PIPE Financing 95 Axis Bank Ltd. Bain Capital LLC Financial services PIPE Financing 795.7 Global Logic CPPIB Technology 70 8 Indospace CPPIB RHC Buyout 500 NA Logos India CDPQ Logistics ICICI Lombard General Insurance Warburg Pincus, IIFL, Clermont Financial services TATA Technologies Warburg Pincus Technology Startup/Early Stage 00 NA 8 1. 0 Page 7
Exits Analysis Total Exits US$m No. of Deals 017 1,075 017 57 01,8 01 09 Open Market Secondary Strategic Buyback Exit Type US$m 1,77, 5 881,71 75 81,191 Financial Services Telecom Technology Ecommerce Healthcare Top Sectors US$m 1,8 9 1,90 75 1,519 70 980 1 878,8 IPO 91 1,788 RHC 807 7 Open Market Secondary Strategic Buyback IPO Exit Type # 5 19 17 5 55 91 1 Financial Services Telecom Technology Ecommerce Healthcare RHC Top Sectors # 7 8 7 7 1 7 19 51 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 8
Top Exits Top Exits in 017 Company Sector Sellers Buyer Exit Type US$mn Stake (%) Bharti Airtel Ltd. Telecommunication Qatar Foundation Endowment NA Open Market 185 5 Flipkart Pvt Ltd. Ecommerce Tiger Global SoftBank Secondary 800 NA Global Logic Technology Apax CPPIB Secondary 70 8 ICICI Lombard General Insurance Company Ltd Max Group (Max Ventures and Industries Ltd. & Max Financial ) ICICI Lombard General Insurance Company Ltd Max Financial Services Ltd. Financial Services Fairfax NA IPO 558 1 Financial Services Goldman Sachs and others NA Open Market 511 1 Financial Services Fairfax Warburg Pincus Secondary 8 1 Financial Services Goldman Sachs NA Open Market 58 15 Genpact Ltd. Technology Bain Capital, GIC NA Open Market 9 5 Mytrah Energy India Pvt. Ltd. Tikona Digital Networks Pvt. Ltd., G Business Power & Utilities Telecommunication Apollo Global, Aion,and others IFC, Goldman Sachs and others Piramal, APG Secondary 70 NA Bharti Airtel Ltd. Strategic NA *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 9
Fund Raise Top Fund Raise in 017 Status Fund US$m Strategy Remark Raised Kedaara 750 Sector agnostic Second fund Raised Chrys Capital 00 Sector agnostic Seventh fund Raised HDFC Capital 550 Real Estate Final close of second fund Raised Morgan Stanley 50 Infrastructure Final close of US$ 1 bn fund Raised SAIF 50 Sector agnostic Final close of third fund Raised Edelweiss Opportunities Fund 50 Sector agnostic Second credit focused fund Page
PE Roundup December 017
PE/VC headline trends Monthly US$ mn # Investments,000 80 5 57 5 50 55 5 5 0,000 0 0,000,0 1,17 9, 1,90,7 1,07 1,8 5, 1,795,095,885,8 0-0 Dec-1 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17,000,000 1,000-000 1500 00 500 0 Exits 5 5 15 17 1 0 8 880 0 550 8 1,8 5 5,15,0,75 5 Dec-1 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Fund Raise 8 191 1 850 77 00 1 189 1 75 88 Dec-1 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 0 0 0 0 8 0 Page 1
Key Trends From a monthly perspective, at US$. billion deal value, Dec 017 recorded a decline of 1% compared to US$ billion in Dec 01 and a 0% decline in number of deals (5 deals vs 5 deals in Dec 01). When compared to the previous month, investments in Dec 017 declined by 17% in value terms and 0% in terms of volume. Expansion and growth investments accounted for almost 50% of deal value in December 017 with US$1. billion recorded across 1 deals. Bain Capital s US$795 million investment in Axis Bank for a.7% stake was the largest deal in December 017, followed by Warburg Pincus US$50 million investment in Bharti Telemedia for a 0% stake and Carlyle s US$5 million investment in SBI cards for % stake. Financial Services (US$1. billion across deals) and Media & Entertainment (US$ million across deals) were the top sectors for the month. December 017 recorded 5% decline in value of exits compared to same period last year (US$5 million across 0 exits vs US$ million across 5 exits in Dec 01). On a month-on-month basis, there was a sharp decline of over 87% in terms of value and 0% in terms of volume, this was on account of a large US$1.5 billion exit by Qatar Foundation Endowment from Bharti Airtel in November 017. *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 1
Investments Value US$ million Volume Financial services Media & Entertainment RHC Technology Ecommerce Power and utilities Food and Agriculture Education RCP Healthcare 9 0 5 17 7 79 55 108 Technology Financial services Food and Agriculture Ecommerce RHC Education Healthcare Media & Entertainment RCP Power and utilities 1 1 5 1 Deal Size US$ mn (Volume) Deal Stage US$ mn (Volume) 1 () 117 (1) 795 (1) 11 () () 19 () 0 () (7) NA (0) 89 () <$Mn $Mn - $0Mn $0Mn - $50Mn $50Mn - $0Mn >$0Mn Growth Start-up/ Early Stage PIPE Buyout Debt ** Deal value not available on out of 5 deals in Dec 017 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 1
Investments Monthly sector cut Investment by Sector US$mn Dec 9 79 1,08-7 Nov 8 99 1 1 Oct 1 17 0 59 Sep 0 15 00 91 Aug 509 10 77 0 00 000 000 000 5000 000 Investment by Sector No. of Deals Dec 7 8 7 Nov 9 9 1 Oct 7 1 Sep 5 8 5 Aug 1-0 0 0 50 0 Ecommerce RHC Financial Services Technology Infrastructure RCP Automotive Power & Utilities Others Healthcare *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 15
Investments Monthly (deal size and type) Deal Size Trend - Value (US$ mn) Deal Type Trend - Value Dec 0 1,7 Dec 1,177 795 89 - Nov 0, Nov 971 795 00 8 Oct 1 1,5 Oct 1,9 505 Sep 0 1,0 Sep 9 5 00 1 Aug,71 Aug 150 Deal Size Trend - No of Deals Deal Type Trend - No of Deals Dec Dec 1 7 Nov 1 7 5 5 1 Nov 1 1 9 Oct 8 7 Oct 1 1 Sep 15 9 7 9 Sep 1 Aug 1 9 5 Aug 1 1 <$Mn $Mn - $0Mn $0Mn - $50Mn $50Mn - $0Mn >$0Mn NA PIPE Financing Debt deal Start-up/ Early Stage Buyout Page 1
Top Investments Top Investments in Dec 017 Company PE Investor Sector Stage US$mn Axis Bank Ltd. Bharti Telemedia Ltd. SBI Cards and Payment Services Pvt. Ltd. Phoenix Group KKR India Financial Services Pvt. Ltd. Bain Capital LLC Warburg Pincus Carlyle Altico Capital Abu Dhabi Investment Council Financial services Media & Entertainment Financial services Real Estate, Hospitality & Construction Financial services Nazara Technologies Ltd. IIFL and others Technology Stake (%) PIPE Financing 795.7 50 0 5 19 NA 0 NA 79 NA Supertech Ltd., Capetown Project Altico Capital RHC Debt Financing 7 NA Greenlight Planet Apis Fund Power and utilities NestAway UT-RNT Fund Ecommerce HO.ai Nexus and others Technology Startup/Early Stage Startup/Early Stage 0 NA 50 NA 0 NA Page 17
Exits Exits in Dec 017 Exits by Sector US$mn (Volume) Exits by Type US$mn (Volume) Infra 7 () 1 () RHC 1 () 80 (1) 85 () Technology 59 () () RCP () Food and agriculture 18 () NA () Others () IPO Buyback Strategic Secondary Sale Open Market *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 18
Exits Top Exits Top Exits in Dec 017 Company Sector Sellers Buyer Exit Type US$mn Stake (%) Future Supply Chain Solutions Ltd. Sadbhav Infrastructure Project Ltd. Nazara Technologies Ltd. Prestige Projects Pvt. Ltd. Logistics SSG Capital NA IPO 81 0 Infrastructure Xander Group NA Open Market 0 8 Technology RHC WestBridge Capital Rising Straits Capital IIFL Asset Management and others Prestige Estates Projects Ltd. Secondary 5 5 Buyback 51 7 Blue Star Ltd. RCP SAIF Partners NA Open Market Olive Bar & Kitchen Private Ltd. Fermenta Biotech Ltd. Ashiana Housing Ltd Specsmakers Opticians Pvt. Ltd. Food and agriculture Healthcare RHC RCP Aditya Birla PE Evolvence India Life Sciences Fund WestBridge Capital Fulcrum Venture India Fund II India Agri Business Fund II Secondary 1 0 Dil Ltd. Buyback 1 1 (blank) Open Market 7 Eight Roads Ventures, Atma Ram Family Office Secondary NA Just Dial Ltd Ecommerce Sequoia Capital NA Open Market 8 *** RCP Retail & Consumer Products, RHC-Real Estate, Hospitality & Construction, CBP Cement & Building Products Page 19
Fund Raise Top Fund Raise/Announcements in Dec 017 Status Fund US$m Strategy Remark Raised HDFC Capital 550 Real Estate First close of second fund Raised Lighthouse 00 Sector-agnostic Third Fund Raised Edelweiss Real Estate Opportunities Fund 78 Sector-agnostic Final Close Announced Fairfax 1,500 Sector-agnostic Three funds Announced CG Group 00 Sector-agnostic India-focused distressed assets fund Page 0
Ernst & Young LLP EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. For any queries you can reach out to the undersigned. Vivek Soni Partner Private Equity & Transaction Advisory Services T +91 19 0 F +91 19 00 E vivek.soni@in.ey.com Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/in. Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 008 in India, having its registered office at Camac Street, rd Floor, Block C, Kolkata 70001 018 Ernst & Young LLP. Published in India. All Rights Reserved. This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. Page 1