From origination to exit, how much value can your capital create? PE Roundup July 18

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From origination to exit, how much value can your capital create? EY can help private equity enterprise originate, innovate, optimize and realize value throughout the transaction life cycle. PE Roundup July 18 The better the question. The better the answer. The better the world works.

Key Trends Investments July 2018 recorded US$1.5 billion in deal value, at par with investments recorded in July 2017. In terms of deal volume, investment activity increased by 50% to 63 deals in July 2018, compared to 42 in July 2017. Breaking away from recent trends, July 2018 recorded fewer large size deals. There were three deals of value > US$100 million (cumulatively worth US$402 million) in July 2018, accounting for only 26% of total investments as against a 65% investment share in June 2018. The fewer number of large deals in July is no indication of a trend, as there are many mega deals in the works, the most prominent being the recently announced US$4.2 billion acquisition of Arysta LifeScience, an agrochemicals company by UPL Limited. Press reports seem to indicate that UPL is looking to partfund this acquisition by raising funds from large PE funds. TPG was the most active PE investor in July 2018 and announced four deals, including a US$105 million investment in Sai Life Sciences Limited for a 35% stake, US$40 million investment in ecommerce platform Livespace and coinvestments with a group of other investors in online ticketing platform Bookmyshow and an NBFC, Five Star Business Finance Limited. In terms of stages of investment, expansion/growth investments continued to lead in terms of value of investments, with 20 deals worth US$633 million, 23% higher compared to July 2017; while startups ranked at the top in terms of number of deals (33 deals). July saw US$431 million invested in startups, highest monthly value in 2018. Buyouts on the other hand, recorded the lowest monthly value of investments in 2018, with two deals worth US$100 million. From a sector point of view, real estate (US$669 million) and financial services (US$299 million) were the most active sectors in terms of value of investments. In terms of number of deals, technology with 16 deals was the leader. Infrastructure and real estate sectors recorded US$392 million in investments across five deals. The largest deal in these sectors was KKR s US$176 million credit investment in real estate projects of Lodha and Shapoorji Pallonji. Page 2

Key Trends Exits & Fund Raise Exits July 2018 recorded eleven exits totaling US$376 million, a slight increase of 6% compared to July 2017(US$352 million across eight exits). Open market exits led with deals worth US$156 million across six exits followed by two secondary exits worth US$105 million. There was one PE backed IPO in July 2018, which saw TA Associates part exit its stake in TCNS Clothing, which owns the women s wear brand W, for US$72 million. From a sector perspective, financial services and pharmaceuticals were the leaders with one deal each of value US$110 million and US$105 million respectively. The largest exit in July 2018 saw IFC sell its 4% stake in AU Small Finance Bank Limited for US$110 million. Fund Raise July 2018 witnessed five fund raises worth US$807 million. There were US$1,268 million worth fund raise plans announced in Jul 2018. The largest fund raise of US$550 million was made by Indospace for investments into industrial parks. Page 3

PE/VC monthly headline trends Investments US$m 5,000 4,000 3,000 2,000 1,000 Total PE/VC Investments 74 66 61 63 55 55 50 53 53 53 46 48 42 1,468 5,424 1,795 2,095 2,637 2,647 3,506 1,438 2,972 2,399 3,214 1,579 1,537 Jul17 Aug17 Sep17 Oct17 Nov17 Dec17 Jan18 Feb18 Mar18 Apr18 May18 Jun18 Jul18 # 80 60 40 20 0 Value (US$m) # of deals US$m 5,000 4,000 3,000 2,000 1,000 2 1,640 3,782 300 383 230 1,085 1,264 PE/VC Investments split across asset classes 820 440 300 435 335 322 684 1,634 146 243 15 388 392 1,773 1,653 2,212 2,686 1,195 951 2,064 2,774 1,418 1,145 Jul17 Aug17 Sep17 Oct17 Nov17 Dec17 Jan18 Feb18 Mar18 Apr18 May18 Jun18 Jul18 PE/VC Investments(other sectors) (US$m) Real Estate (US$m) Infrastructure (US$m) Page 4

PE/VC monthly headline trends Exits US$m 3,000 2,000 1,000 Total PE/VC Exits 32 24 25 27 22 17 17 18 12 12 8 11 11 352 2,154 2,044 623 2,725 401 969 150 705 1,623 1,638 446 376 Jul17 Aug17 Sep17 Oct17 Nov17 Dec17 Jan18 Feb18 Mar18 Apr18 May18 Jun18 Jul18 # 40 30 20 10 Value (US$m) # of exits US$m 3,000 PE/VC Exits split across asset classes 16 2,000 64 4 212 1,000 2,708 2,086 76 80 1,623 158 62 129 7 352 1,832 466 67 813 53 576 1,637 446 13 272 97 356 Jul17 Aug17 Sep17 Oct17 Nov17 Dec17 Jan18 Feb18 Mar18 Apr18 May18 Jun18 Jul18 Other Sectors (US$m) Real Estate (US$m) Infrastructure (US$m) Page 5

PE/VC monthly headline trends Fund Raise US$m 2,000 1,000 Fund Raise 8 7 6 6 5 4 4 3 3 3 3 2 2 436 109 1,689 31 675 828 244 153 1,060 469 368 863 807 Jul17 Aug17 Sep17 Oct17 Nov17 Dec17 Jan18 Feb18 Mar18 Apr18 May18 Jun18 Jul18 # 10 8 6 4 2 Total funds raised (US$m) Total # of funds raised Page 6

PE Investments excluding Infrastructure and Real Estate Top Sectors by Value US$m Top Sectors by Volume Financial services 299 Technology 16 HealthCare 183 Financial Services 7 Pharmaceuticals 115 Ecommerce 6 Media & Entertainment 115 Media & Entertainment 5 Others 432 Others 24 Deal Value US$m (Volume) Deal Type US$m (Volume) 379 (11) 355 (4) 532 (18) 410 (32) 225 (2) 77 (24) 108 (8) 62 (5) 100 (2) 39(1) < $10m $10m $20m $20m $50m $50m $100m > $100m Credit Investment Buyout PIPE Investment Startup/Early Stage Growth Capital RCP Retail & Consumer Products Page 7

PE Investments Infrastructure and Real Estate By Value US$m By Volume Real Estate 392 Real Estate 5 Infrastructure Infrastructure Deal Value US$m (Volume) Deal Type US$m (Volume) 196 (2) 176 (1) 271 (2) 100 (2) 0 (1) 20 (1) 20 (1) < $10m $10m $20m $20m $50m $50m $100m > $100m Credit Investment Buyout PIPE Investment Startup/Early Stage Growth Capital Page 8

Top PE Investments Top PE Investments excluding Infrastructure and Real Estate in July 2018 Company PE Investor Sector Stage US$m Stake (%) CureFit Healthcare Private Limited Accel India, IDG Ventures, Kalaari Capital, Oaktree Capital Healthcare Startup/Early Stage 120 NA Sai Life Sciences Limited TPG Pharmaceuticals Growth Capital 105 35 Big Tree Entertainment Private Limited TPG, Accel India, SAIF Partners Media & Entertainment Growth Capital 100 NA Five Star Business Finance Limited Morgan Stanley PE, Sequoia Capital,Norwest Venture Partners, TPG Financial Services Growth Capital 100 NA Spoton Logistics Private Limited Samara Capital Logistics Buyout 80 100 Page 9

Top Infrastructure and Real Estate Investments Top Infrastructure and Real Estate Investments in July 2018 Company PE Investor Sector Stage US$m Stake (%) 3 Mumbai real estate projects of Lodha and Shapoorji Pallonji KKR Real Estate Credit Investment 176 NA PBEL Property Development India Private Limited., Residential Projects Peninsula Brookfield Realty Fund Real Estate Growth Capital 100 NA Samhi Group Piramal Capital Real Estate Credit Investment 96 NA Page 10

Exits US$ 376 Million over 11 Deals Exits in July Deal Value US$m (Volume) Deal Value US$m (Volume) Financial Services 110 (1) 156 (5) Pharmaceuticals 105 (1) 105 (2) Retail & Consumer Products 75 (2) 71 (1) Industrial Products Others 34 (1) 49 (6) 13 (1) 29 (2) IPO Buyback Strategic Secondary Open Market Page 11

Exits Top Exits Top Exits in July 2018 Company Sector Sellers Buyer Exit Type US$m Stake (%) AU Small Finance Bank Limited Financial Services IFC Open Market 110 4 Sai Life Sciences Limited TCNS Clothing Company Private Limited Pharmaceuticals TATA Capital TPG Secondary 105 ~35 Retail and Consumer Products TA Associates IPO 72 11 Page 12

Fund Raise Top Fund Raise/Announcements in July 2018 Status Fund US$m Strategy Remark Raised IndoSpace 550 Real estate Raised Lightspeed Ventures 175 Sector agnostic Second close Raised SRI Capital 40 Technology Announced Piramal Capital 500 Sector agnostic Announced Motilal Oswal Real Estate 218 Real estate Page 13

About EY s Private Equity Services Practice EY has been working with the private equity industry for more than 25 years, with approximately 25,000 seasoned professionals worldwide dedicated to the industry and its business issues. EY serves 74% of the top 300 PE firms included in the Global PEI 300 firms list. Private equity firms, portfolio companies and investment funds face complex challenges. They are under pressure to deploy capital amid geopolitical uncertainty, increased competition, higher valuations and rising stakeholder expectations. Successful deals depend on the ability to move faster, drive rapid and strategic growth and create greater value throughout the transaction life cycle. EY taps its global network to help source deal opportunities and combines deep sector insights with the proven, innovative strategies that have guided the world s fastest growing companies. In India, EY is among the leading providers of advisory, tax, transactions and assurance services. The organization is also the number one professional services brand* in India, which is a testimony to our relentless commitment to deliver exceptional client service and create a better working world. EY has 16 offices spread across 10 cities in India. Worldwide, our 247,570 people across 150+ countries and 700+ cities are united by our shared values and their unwavering commitment to quality. EY s India Private Equity Services Practice has been among the top advisors for private equity deals over the past ten years. EY has been awarded the Most Active Transaction Advisor award by Venture Intelligence for 20092013 and also the Investment Bank of the Year, Private Equity award by VC Circle in 2012 and 2017. EY s India Private Equity Services Practice provides value to PE funds and their portfolio companies through its deep sector and service expertise. EY India is organized around key industry verticals in a matrix structure that enables us to offer an unparalleled blend of industry expertise and functional skills. We actively track about 15 sectors with sector leads driving our penetration in each of those sectors. Page 14

About EY s Private Equity Services Practice (cont d..) EY has been ranked as #1 Financial Advisor for over a decade across Mergermarket, Thomson Reuters and Bloomberg**. Our position as the foremost M&A advisor in the Indian midmarket enables us to create a robust deal origination pipeline for our PE/VC clients, acting as the tip of the spear of what is India s dominant PE Services practice. Merger market Thomson Reuters Bloomberg 29 18 40 39 24 19 29 12 49 41 43 33 18 21 20 19 34 21 38 28 34 21 26 15 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 EY Closest compete # 1 advisor on deal count in Financial advisory league tables across databases Consistently maintaining a significant lead from closest compete Adjudged as the Investment Bank of the Year at the VC Circle Awards 2017 Page 15

EY services for Private Equity We offer an array of services to Private Equity funds and their portfolio/investee companies through our various service lines. Partners (Personal tax) Fund Raising (Audit of fund performance) Fund assurance (Assurance and Tax Structuring) Buyside advisory (M&A and valuations, Fraud, Investigation and Dispute Services) Funds Transaction Advisory Services Buyside support (Financial Due Diligence, Tax Structuring and Diligence, Business DD, Environmental Compliance, CDM Human Capital, Valuations) Exit readiness (IPO, GAAP Conversion, SOX Compliance, VDD, Sale Mandates, Clause 49) Distressed (Bank intermediary, working capital, cost reduction) Portfolio Services Assurance (Assurance, Tax Compliance, Risk Management, Corporate Governance Advisory, Internal Audits and Fraud reviews) Transition (Transaction Integration, GAAP Conversion, Governance, Controls Assessment, MIS Development, Process Advisory, Standard Operating Procedures) Growth (Strategic Options, Technology Security, IT Strategy, Operational Improvement, Market Entry Options & Working Capital Management) Page 16

Delivering issuesbased solutions to the entire PE enterprise Solutions EY has established six distinct solutions reflecting the holistic set of challenges that PE firms face across all levels of the organization the management company, the funds, and their portfolio companies. A B Operating model and automation Global compliance and reporting Deal origination Integrated due diligence Value creation Exit readiness and IPO Alternative asset managers need to drive efficiency through multiyear target operating models and infrastructure strategies to remain competitive. These align with strategic growth plans by leveraging vendor and service provider activities. EY defines and monitors data analytics and key performance indicators to annually assess data governance and risk against these target models. Large asset managers have hundreds of nonus legal entities in multiple countries, and continually create new ones all with different compliance obligations. Many are outsourced and require local knowledge. EY gathers the data, leverages local EY teams familiar with accounting and tax laws, performs data analytics to identify trends, risks and opportunities and monitors filing requirements. The intense competition for a limited number of deals raises stakes to win for private equity firms. A proprietary investment approach, driven by sector insights, enables firms to confidently place winning bids that generate appropriate returns. EY s global origination team turns opportunities into actionable strategies. Our proprietary knowledge and advanced analytics help develop strategic capital options to help firms achieve success. Private equity firms conduct diligence on assets across strategic, financial, tax, operational and HR issues. Firms historically used issuebased advisors, managing different parties and consolidating findings at the end of the process. Employing EY s integrated diligence approach at the early stages of a transaction provides more effective, comprehensive diligence on an asset, giving firms a distinct competitive advantage. Privateequity firms face increasing pressure to attract fresh capital. This requires generating greater investment returns and demonstrating a consistent track record in creating value in their portfolio. EY s value creation solution addresses these challenges across all five stages of the deal life cycle, including deal origination, diligence, inception, optimization and exit strategy. Private equity firms must plan exits rigorously in order to successfully monetize their investment during the exit process in today s challenging environment. Executives must identify key shortand longterm priorities prior to undertaking an IPO or alternative transaction. EY can advise deal teams and portfolio companies on exit alternatives, assess exit readiness, prepare a business for exit/ipo and create a value story for targeted buyers. Page 17

Focused advisory solutions for private equity backed portfolio companies Growth Navigator Achieving your growth ambitions Having a broader perspective on the drivers of growth in your business and finding innovative ways to accelerate and sustain that growth can give you a competitive advantage. That s why we ve developed EY Growth Navigator, an interactive experience that uses the EY 7 Drivers of Growth to help you and your leadership team assess your business s current and aspirational position, and create a strategic road map to help you get there. Route to Market (RTM) Deliver a successful strategy for your business EY identifies focused opportunities for optimizing cost and growth after full assessment; designs new RTM, including different approaches for different segments (customers, regions, seasonal demand); identifies the optimal concessionaires model taking into account different distribution approaches; and supports the implementation of the RTM by providing IT specs and additional services (e.g., stock management options). Performance improvement Depending on objectives and business context, EY helps the client develop a combination of shortterm and longterm strategies to reduce costs, optimize process and bring in efficiency and effectiveness across all layers of business to deliver positive impact on EBITDA by ensuring optimal utilization of both tangible and intangible resources. Page 18

Focused advisory solutions for private equity backed portfolio companies (cont d..) Cyber security EY assists internal teams to build cyber awareness and conduct companywide training, as well as training of board of directors. EY supports in building regulations and compliance requirements with audit and readiness services. EY helps transform the security program and integrate information security and IT risk across the enterprise as well as help implement globalized data protection strategies to protect information that matters, with consideration of regulatory and industry compliance. Analytics Generate insights to make smarter, faster decisions EY helps clients build data and information strategies using various analytics tools to deal with big data to address various areas of business, ranging from opportunity sizing and feasibility, operations and customer modelling, executive decision making, merger acquisition and valuation. EY helps across the capability value chain ranging from strategy, implementation, hosting and running the analytics functions. IPO readiness The first step in the IPO value journey EY s IPO readiness service is the first step in what we describe as the IPO value journey and is designed to guide the client through a successful transformation from private to public status. Achieving readiness will ensure a strong debut in the capital markets. Getting IPO readiness right means implementing change throughout the business, organization and the corporate culture. As a public company, the client will be subject to increased filing requirements, transparency, compliance, scrutiny by investors and analysts, and overall accountability for delivering on promises. Successful businesses start to prepare typically 12 to 24 months before the IPO in many cases with an IPO readiness assessment. Page 19

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. Contacts Private Equity Services Practice Vivek Soni Partner and National Leader E: Vivek.Soni@in.ey.com Research and Insights Allwyn D Souza Manager E: Allwyn.Dsouza@in.ey.com Brand, Marketing and Communications Pooja Bhalla Mathur Vice President E: Pooja.Mathur@in.ey.com Dilip Dusija Associate Partner E: Dilip.Dusija@in.ey.com Shreya Sharma Assistant Manager E: Shreya4.Sharma@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, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata 700016 2018 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 20