Private equity firms invested about $3,602 million across 129 deals during the quarter ended June 2016, a decline of 16 per cent over the same period a year ago. According to early data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations, there were 169 PE deals, worth $4,278 million in April-June of 2015.
The latest figures take the PE investments in the first six months of 2016 to $7,492 million across 298 deals. These figures include venture capital investments, but exclude PE investments in real estate.
There was also dearth of big-ticket deals during the June quarter as only six PE investments worth $100 million or more were reported compared with 11 such transactions in the same period last year.
"Mega deals in the Internet and mobile companies were noticeable by their absence in the latest quarter - even compared to the immediate previous quarter when companies like BigBasket, CarTrade and ShopClues had attracted investments of over $100 million each," noted Arun Natarajan, founder of Venture Intelligence. The largest PE investment announced during the June quarter was Blackstone's $1.1 billion buyout of the majority stake held by US-based Hewlett Packard Enterprise in IT Services & BPO firm Mphasis.
Meanwhile, sovereign Wealth Funds like Singapore's GIC, Abu Dhabi's ADIA and Malaysia's Khazanah participated in mega investments for companies like the renewable power-focussed Greenko Group (which raised $230 million from ADIA and GIC) and analytics BPO firm Fractal Analytics ($100 million from Khazanah).
"Despite the cooling off in Internet & Mobile sectors as well as more recent international developments like Brexit, the increasing commitments being made by truly long-term investors like sovereign wealth funds, pension funds and buyout funds portend well for the second half of the year," Natarajan added.
May P-Note investments rise to Rs 2.15 trillion
Investments into India’s capital markets through participatory notes (P-Notes) rose to Rs 2.15 lakh crore at the end of May, after hitting a 20-month low in the preceding month. P-Notes are typically instruments issued by registered foreign portfolio investors to overseas investors who wish to invest in Indian markets without registering themselves directly in India to save on time. But they still need to go through a proper due diligence process.
According to Sebi data, the total value of P-Notes investment in Indian markets -- equity, debt and derivatives -- increased to Rs 2,15,338 crore at the end of May, from Rs 2,12,132 crore in March-end. The figure in March had touched the lowest level since August 2014 when the cumulative value of such investments stood at Rs 2.11 lakh crore. The total value of P-Notes investment in Indian markets has fallen since October and the trend continued till February. However, it saw a slight increase in March.