PE, VC industry investments see sharp increase in April: EY
Mumbai: The private equity and venture capital industry saw investments worth $2.4 billion across 69 deals in April, the 23% year-to-year jump backed by large deals in sectors such as e-commerce and life sciences, according to EY’s private monthly deal tracker.
There were eight deals of a value greater than $100 million in April 2018, aggregating $1.9 billion, compared to six deals worth $1.2 billion in April 2017.
The largest investment in April 2018 saw SoftBank spend $400 million for a 21% stake in Paytm Mall, the brand name under which Paytm E-commerce Pvt. Ltd operates an online market place.
This was followed by couple of deals in the life sciences sector—$350 million investment in Mankind Pharma Ltd by ChrysCapital, GIC and CPPIB for a 10% stake, and Apax Partner’s $350 million acquisition of Healthium Medtech Pvt. Ltd, a maker of surgical equipments.
The former deal marks ChrysCapital’s return to Mankind Pharma, a company it helped build—in 2015, it sold 11% stake in Mankind to another PE firm Capital International for $214 million, making a tenfold return in seven years.
According to the report, infrastructure and real estate sectors recorded three deals worth $335 million compared to seven deals worth $2 billion in March 2018.
“Nonetheless, year-on-year comparisons show that the interest in infrastructure and real estate sectors in 2018 seems to be greater than in 2017 which recorded two deals worth $179 million in April 2017,” the report said.
The largest deal in the infrastructure and real estate asset class involved CPPIB investing $185 million in Island Star Mall Developers Pvt. Ltd, CPPIB’s strategic investment platform with Phoenix Mills to develop, own and operate retail-led mixed-use developments across India.
April also saw 15 exits worth $1.2 billion, a 47% increase in value in half as many deals as in April 2017. This was mainly on account of Actis’ sale of Ostro Energy Pvt. Ltd to Re-New Power Ventures, a CPPIB backed company, for $692 million.
“This deal makes ReNew Power the largest renewable energy company in the country with total commissioned and under-construction assets of about 4,300MW. Actis had set up Ostro in early 2015 with an investment of S$280 million. Another large exit during the month saw TPG and CX Partners exit their stake in Healthium Medtech Pvt. Ltd to Apax for close to $300 million,” the report added.