How do you see the opportunity in your obstacles? - EY
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How do you see the opportunity in your obstacles? To reach operational excellence, private equity firms need the right insights to learn as they go — discovering new ways to overcome obstacles and seize opportunities. The IVCA-EY monthly PE/VC roundup – June 2020 The better the question. The better the answer. The better the world works.
Key trends
Investments
► PE/VC investments in June 2020 were 2.2 times higher compared to June 2019 and 25% higher compared to May
2020 (US$6.8 billion in June 2020 vs. US$3.1 billion in June 2019 and US$5.4 billion in May 2020). The growth was
mainly on account of large investments in Jio Platforms (US$4.9 billion), accounting for 72% of all investments in
June 2020.
► From the point of view of deal type, growth deals recorded the highest value of investments at US$5.8 billion across
17 deals, on account of the large investments in Jio Platforms. Start-up investments were the second highest at
US$654 million across 52 deals followed by credit investments at US$330 million across 10 deals.
► June 2020 recorded 11 large deals (deals of value greater than US$100 million) aggregating US$6.1 billion compared
to eight large deals worth US$2.1 billion in June 2019.
► From a sector point of view, telecom was the top sector in June with US$4.9 billion in PE investments in Jio Platforms.
Page 2 14 July 2020 EY analysis of VCCEdge data
Key trends
Exits
► June 2020 recorded 10 exits worth US$564 million, 45% lower than the value of exits in June 2019 (US$1 billion)
and twice the value recorded in May 2020 (US$286 million). Open market exits in June 2020 were highest at US$559
million across five deals.
► The largest exit in 2Q20 saw Blackstone sell an 8.7% stake in Embassy Office Parks REIT for US$302 million.
Fundraise
► June 2020 recorded total fundraises of US$121 million compared to US$971 million raised in June 2019.
Page 3 14 July 2020 EY analysis of VCCEdge data
PE/VC monthly headline trends: investments
Total PE/VC investments
US$m #
99 100 120
8,000 93 6,809
86 89 100
79 80 74 77
6,000 73 72 5,444 79
80
61
4,000 8,351 60
5,288 4,917 40
2,000 4,267 4,649
3,104 3,408 3,242 20
2,387 2,461 1,708 898 966
- 0
Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
Value (US$m) # of deals Investment in Jio Platforms
US$m
PE/VC investments: split across asset classes
US$m
8,000
7,000
4,358 3 379
6,000 5
5,000 1,120
4,000 297 803 26
764 98 6,427
3,000 5,439
1,323 1,450 1,415
2,000 3,696 4,142 556 898 127
682 2,700 114 625 78 234 3 208
1,000 1,859 1,714 1,484 1,347 8 -
1,099 1,207 887 758
-
Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
PE/VC investments (other sectors) (US$m) Real estate (US$m) Infrastructure (US$m)
Page 4 14 July 2020 EY analysis of VCCEdge data
PE/VC monthly headline trends: exits
Total PE/VC exits
US$m 19 #
3,000 18 20
16
15 14
12 15
2,000 11 11
9 9 9 10
10
2,663 5
1,000
1,490 5
1,019 960 864 1,105
616 680 461 329 117 286 564
- 0
Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
Value (US$m) # of exits
US$m
PE/VC exits - split across asset classes
US$m
3,000
-
29
2,000
--
2,633 89
1,000 7- - -
104 - -
68 187 1,490 348 -
- 1,016
916 953 - 302
548 493 516 461 - 117 -
-
329 -- 286 262
Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
Other sectors (US$m) Real estate (US$m) Infrastructure (US$m)
Page 5 14 July 2020 EY analysis of VCCEdge dataPE/VC monthly headline trends: fundraise
Fundraise
US$m #
3,500 7 8
6
2,800 5 5 6
2,100 4 4 4 4
3 3 3 4
3,233
1,400 2
2
700 1,136
971 742 -
545 654 403 172 603 85 - 50 121
- 0
Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20
Total funds raised (US$m) Total # of funds raised
Page 6 14 July 2020 EY analysis of VCCEdge dataPE/VC investments: US$6,427 million over 71 deals (excluding
infrastructure and real estate investments)
Top sectors by value US$m Top sectors by volume
Telecom 4,917 Financial services 10
Food and Agriculture 9
Pharmaceuticals 656
E-commerce 8
Financial services 294
Technology 7
Technology 164
Pharmaceuticals 6
Education 127 Telecom 5
Others 269 Others 26
Deal value US$m (volume) Deal type US$m (volume)
5814 (9) 5803 (24)
240 (7) 184 (2) 501 (37)
109 (31) 79 (5) 110 (7) 5 (1) 7 (2)
US$100m Credit Buyout PIPE Start-up/ Growth
US$20m US$50m US$100m investment Early stage capital
Page 7 14 July 2020 EY analysis of VCCEdge dataInfrastructure and real estate investments: US$ 383 million over
eight deals
By value US$m By volume
Real estate 3 Real estate 2
Infrastructure 379 Infrastructure 6
Deal value US$m (volume) Deal type US$m (volume)
292 (2) 219 (3)
153 (3)
77 (2)
13 (2) NA (NA) NA (NA) 10 (2) NA (NA) NA (NA)
US$100m Credit Buyout PIPE Start-up/ Growth
US$20m US$50m US$100m investment Early stage capital
Page 8 14 July 2020 EY analysis of VCCEdge dataTop PE/VC investments PE/VC investments in Jio Platforms – June 2020 PE investors Stage US$m Stake (%) Public Investment Fund of Saudi Arabia Growth Capital 1,497 2.30 Mubadala Investment Growth Capital 1,211 1.85 Tarrant Capital, TPG Capital Asia, L Catterton Management and others Growth Capital 849 1.32 Abu Dhabi Investment Council Growth Capital 754 1.16 Silver Lake Management Growth Capital 606 0.93 Page 9 14 July 2020 EY analysis of VCCEdge data
Top PE/VC investments
Top PE/VC investments excluding infrastructure and real estate in June 2020*
Company PE Investors Sector Stage US$m Stake (%)
Piramal Pharma Carlyle Pharmaceuticals Growth capital 490 20
Postdot Technologies Private Nexus Capital Advisors, Insight
Technology Growth capital 150 NA
Limited Venture Management and others
Intas Pharmaceuticals Limited ChysCapital Pharmaceuticals Growth capital 132 3
Oxfordcaps JV Cerestra Advisors Education Growth capital 125 NA
Fullerton India Credit Company
IFC Financial services Growth capital 100 NA
Limited
ICICI Prudential Life Insurance
GIC Financial services PIPE 84 1
Company Limited
* PE/VC deals excluding investments in Jio Platforms in June 2020
Page 10 14 July 2020 EY analysis of VCCEdge dataTop infrastructure and real estate investments
Top infrastructure and real estate investments in June 2020
Company PE Investors Sector Stage US$m Stake (%)
Navayuga Road Projects Private Edelweiss Alternative Asset
Infrastructure Growth capital 150 NA
Limited (Two road assets) Advisors
Development Finance Credit
ReNew Power Limited Infrastructure 142 NA
Corporation investment
Sitara Solar Energy Private Development Finance Credit
Infrastructure 50 NA
Limited Corporation investment
Page 11 14 July 2020 EY analysis of VCCEdge dataExits: US$ 564 million across 10 deals in June 2020
Exits in June 2020
Deal value US$m (volume) Deal value US$m (volume)
559 (5)
RHC* 302 (1)
Financial services 132 (4)
Pharmaceuticals 84 (1)
Technology 44 (1)
NA (NA) NA (NA) 2 (4) 3 (1)
Others 2 (3)
IPO Buyback Strategic Secondary Open
market
* Real Estate, Hospitality & Construction
Page 12 14 July 2020 EY analysis of VCCEdge dataTop exits
Top exits in June 2020
Company Sector Sellers Buyer Exit type US$m Stake (%)
Embassy Office Parks
Real estate Blackstone NA Open market 302 9
REIT
Laurus Labs Limited Pharmaceuticals Warburg Pincus NA Open market 84 12
AU Small Finance
Financial services ChrysCapital NA Open market 67 2
Bank Limited
AU Small Finance
Financial services IFC NA Open market 61 2
Bank Limited
Page 13 14 July 2020 EY analysis of VCCEdge dataFundraise Top fundraise/announcements in June 2020 Status Fund US$m Strategy Raised Basic Vectors 50 B2B software-as-a-service (SaaS) Raised Beenext-Emerging Asia Fund 50 Early stage Announced Antler 50 Early stage Page 14 14 July 2020 EY analysis of VCCEdge data
About EY Private Equity Services
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 offices spread across 11 cities in India. Worldwide, our 270,000 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 2009-2013 and also the “Investment Bank of the Year,
Private Equity” award by VC Circle in 2012 and 2017 and for M&A in 2018. EY was also the
top PE advisor in the Venture Intelligence league table in 2018.
► 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 16 14 July 2020 EY analysis of VCCEdge dataEY 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 assurance and management
(Fund and fund management company audit,
Fund Raising portfolio valuation, controls and process
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Funds
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advisory, integrated sell side advisory – Advisory commercial, forensics and background, HR, IT
building equity story, vendor due diligence and environmental, modeling and valuations)
(VDD), structuring marketing) Services
Exit readiness Portfolio Services Transition
(IPO, GAAP conversion, vendor due (PMO, 100-days plan, transaction Integration,
diligence, value creation, investor GAAP conversion, governance, controls
relations, exit preparation, sale assessment, MIS development, process
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and bankruptcy advisory) compliance) management)
Page 17 14 July 2020 EY analysis of VCCEdge dataErnst & Young LLP
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