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PEs, VCs pump in $1.6-billion investment in August: Report

PEs, VCs pump in $1.6-billion investment in August: Report

PTI|

Sep 14, 2018, 10.40 AM IST

Return on Equity (ROE)
During the reporting month, four deals were recorded of value greater than $100 million, accounting for 72% of total investments against $4.7 billion recorded across six deals in August 2017.

MUMBAI:

Private equity

(PE) and

venture capital

(VC) investments stood at $1.6 billion across 50 deals in August, with buyout deals recording two times increase in value compared to the year-ago period, says a report.

According to EY’s private equity monthly deal tracker report, August 2018 recorded $830 million across 18 exits with two $200 million plus deals.

“PE/VC activity continued its strong run with $1.6 billion investments received in August 2018. Till August end, the sentiment towards India remained strong, with funds further adding to their dry powder, as evidenced by $2 billion raised during the month, adding to the already high levels of dry powder of close to $40 billion available for investment into the country,” EY’s partner and national leader (private equity services), Vivek Soni, said.

During the reporting month, four deals were recorded of value greater than $100 million, accounting for 72 per cent of total investments against $4.7 billion recorded across six deals in August 2017.

KKR’s $530 million buyout of 60 per cent stake in Ramky Enviro Engineers was the largest deal in August 2018.

From a sector point of view, power and utilities led with $532 million investments across two deals followed by real estate with $360 million invested across two deals.

Financial services, which has been one of the top sectors over the previous months, recorded just $42 million in investments across six deals.

In terms of number of deals, technology with seven deals was the leader, the report said.

Year-to-date, PE/VC investments till August 2018 have crossed $18.7 billion, 9 per cent higher compared to the same period last year.

During August 2018, 18 exits totalling $830 million were seen, which is double the value compared to July 2018.


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