The IVCA-EY monthly PE/VC roundup shows that August 2019 recorded investments worth US$4.4 billion across 82 deals. The industry saw 16 large deals of value greater than US$100 million and strong investment activity in infrastructure and real estate asset classes.
Meanwhile, PE/VC recorded exits worth US$691 million across 11 deals.
In a press release, Vivek Soni, Partner and National Leader Private Equity Services, EY said, “As predicted by us at the beginning of the year, Indian PE/VC investment activity in 2019 has surpassed the all-time high of US$36.5 billion recorded in 2018. PE/VC investments in the first eight months of 2019 have breached the US$36.7 billion level, and given the deal momentum in various sectors, by the end of 2019, the total Indian PE/VC investment could potentially be in the range of US$48 billion to US$50 billion.”
He further said, “While domestic factors like growth slowdown, tight liquidity, market sentiment and currency depreciation add to the prevailing uncertainty, seasoned PE investors are expected to forge ahead strongly. We continue to believe that 2019 could be one of the better investment vintages for the Indian PE/VC industry as notwithstanding the bumpy outlook in the short-term, LP and GP interest in India’s long-term growth prospects remains intact.”
PE/VC investments in August 2019 (US$4.4 billion) were 13% higher compared to August 2018 (US$3.9 billion), however were 47% lower compared to July 2019 (US$8.5 billion), which had recorded the highest monthly value of investments on the back of the large US$3.7 billion Brookfield-Reliance Jio deal. The total PE/VC investments in India now stand at US$36.7 billion, surpassing the previous high of US$36.5 billion recorded in 2018. In terms of number of deals, August 2019 recorded 39% higher deals compared to August 2018 and 27% lower compared to July 2019 (82 deals in August 2019 vs. 59 deals in August 2018 and 112 deals in July 2019).