In today's frenetic world, how does private equity set the pace? - EY regular presentation

 
In today's frenetic world, how does private equity set the pace? - EY regular presentation
In today’s frenetic world,
   how does private equity set
   the pace?
   Learn how EY helps private equity
   professionals thrive in the Transformative
   Age

   The IVCA-EY monthly PE/VC roundup –
   1Q2021

The better the question. The better the answer.
The better the world works.
In today's frenetic world, how does private equity set the pace? - EY regular presentation
Our thoughts

“
The first quarter of 2021 has seen a sequential month on month increase in PE/VC investment
activity, from US$1.6 billion in Jan to US$4.6 billion in March 2021. On a y-o-y basis,
investments grew by 64% in 1Q21 due to the low base effect as investments in 1Q20 were severely
curtailed by the growing uncertainty around the spread of COVID-19. After the flurry of mega
deals towards the second half of 2020, there has been a marked decline in large deals in 1Q21
with just 22 large deals aggregating US$4.8 billion vs. 30 deals worth US$16 billion recorded in
4Q20. Likewise, the number of buyouts have also reduced significantly with ten buyouts worth
US$1.1 billion in 1Q21 vs. 21 buyouts worth US$8.9 billion in 4Q20. The pandemic resilient
sectors like pharma, healthcare, edtech, online media, SaaS etc continue to see good traction in
both value and volume of PE/VC deals.

PE/VC exits have picked up momentum in 2021 with exits worth US$4.2 billion, which is 70% of
the total value recorded last year. 1Q21 has recorded 9 PE-backed IPOs which is the highest
quarterly number so far. Should the mid-cap / small-cap indices remain buoyant and not become
volatile, we expect to see many more PE-backed companies hitting the capital markets this year
given the healthy appetite for primary issuances. As of now, there are over 90 IPOs that have
filed their DRHPs with SEBI of which more than 45 are PE-backed.

E-commerce has emerged as a new IPO intense sector wherein six companies have filed their
DRHPs including Zomato, Nykaa, and Grofers. If these companies see favorable investor
interest, we could see follow through from a significantly higher number of companies from the
e-commerce sector. This is in line with the global trend of start-ups going the IPO route; in 2020,
US exchanges hosted 120 VC-backed IPOs worth a combined value of US$259.8 billion1.

Notwithstanding the encouraging build up in PE/VC investment and exit activity in 1Q21, the
second wave of COVID-19 infections is surging in India as well as globally. New variants of the
virus and the slow vaccine rollout are raising fresh concerns as many governments/local
authorities impose mini-lockdowns, which could endanger the recovery underwriting thesis.
Investors could turn cautious till more clarity emerges on govt response to the second wave.

1 Pitchbook data

Page 2        15 April 2021        EY analysis of VCCEdge data
In today's frenetic world, how does private equity set the pace? - EY regular presentation
How can you cut cost and
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   Quarterly trend analysis – 1Q2021

The better the question. The better the answer.
The better the world works.
In today's frenetic world, how does private equity set the pace? - EY regular presentation
Key trends: quarterly

Investments

►   On a quarterly basis, PE/VC investments in 1Q21 recorded a 64% increase y-o-y. However, they declined by 55% sequentially
    (US$8.3 billion in 1Q21 vs. US$5.1 billion in 1Q20 and US$18.5 billion in 4Q20). In terms of number of deals, 1Q21 recorded
    an increase of 19% compared to 1Q20 and 10% compared to 4Q20 (266 deals in 1Q21 vs. 223 deals in 1Q20 and 241 deals
    in 4Q20). Though the y-o-y increase in the value of PE/VC investments in 1Q20 appears impressive, it is on account of a lower
    base effect as 1Q20 was significantly affected by the uncertainties that came along with the onset of the COVID-19 pandemic.

►   The improvement in 1Q21 over 1Q20 was mainly on account of higher number of large deals. 1Q21 recorded 22 large deals
    aggregating to US$4.8 billion (compared to 11 large deals aggregating to US$2.2 billion in 1Q20), However, the large deals in
    1Q21 were significantly lower than the previous quarter that had recorded 30 large deals aggregating to US$16 billion. The
    largest deals in 1Q21 include investment worth US$460 million in BYJU’s followed by investment worth US$400 million in
    Dream11 by a group of PE/VC investors.

►   Growth deals were the highest with US$4.3 billion invested across 63 deals (US$1.9 billion across 41 deals in 1Q20 and
    US$7.9 billion across 52 deals in 4Q20), followed by start-up investments worth US$2 billion across 161 deals (US$1.4 billion
    across 135 deals in 1Q20 and US$1.4 billion across 146 deals in 4Q20). Buyouts, which was the most affected deal strategy
    post the onset of the COVID-19 pandemic in 1Q20, recorded US$1.1 billion in 1Q21 across ten deals (US$293 million across
    seven deals in 1Q20 and US$8.9 billion across 21 deals in 4Q20). PIPE investments recorded US$385 million across 11 deals
    in 1Q21 (US$630 million across 19 deals in 1Q20 and US$262 million across 14 deals in 4Q20). Credit investments recorded
    US$480 million in 1Q21 compared to US$880 million in 1Q20 with 21 deals in each quarter (US$105 million across eight
    deals in 4Q20).

►   From a sector perspective, e-commerce was at the top (US$1.8 billion across 45 deals), highest quarterly value of investments
    in the sector in the past five quarters followed by real estate sector (US$1.4 billion across 18 deals), and financial services
    sector (US$1.4 billion across 50 deals).

Page 4    15 April 2021      EY analysis of VCCEdge data
In today's frenetic world, how does private equity set the pace? - EY regular presentation
Key trends: quarterly

Exits

►   On a year-on-year (y-o-y) basis, exits doubled in terms of value in 1Q21 (US$4.2 billion vs. US$1.9 billion in 1Q20) and were
    higher by 81% compared to 4Q20 (US$2.3 billion). The number of exits in 1Q21(56 exits) were 54% higher compared to 1Q20
    (37 exits).

►   Exits via strategic sale were the highest with US$1.8 billion recorded across nine deals, accounting for 44% of all exits in 1Q21
    followed by 22 open market exits worth US$1.1 billion. Exits via secondary sale (sale to other PE funds) were at US$489
    million (13 deals) compared to US$25 million in 1Q20 (six deals). 1Q21 recorded nine PE-backed IPOs, highest number of PE-
    backed IPOs in any quarter, that saw PE funds garner US$361 million in sale proceeds.

►   From a sector perspective, financial services recorded the highest value of exits in 1Q21 (US$1.2 billion across 14 deals)
    followed by e-commerce (US$1 billion across six deals).

►   The largest exit in 1Q21 saw Alibaba, IFC, and Abraaj sell their stake in Bigbasket for US$1 billion to the TATA Group.

Fundraise

►   1Q21 saw US$1.7 billion in fundraises, 20% higher compared to 1Q20 (US$1.4 billion) and 56% lower compared to 4Q20
    (US$3.9 billion). The largest fundraise in 1Q21 saw Kotak Real Estate fund raise US$380 million for its 11th fund for
    investments across both early and late-stage real estate projects in the residential, commercial, retail, warehousing and
    hospitality sectors.

Page 5    15 April 2021      EY analysis of VCCEdge data
In today's frenetic world, how does private equity set the pace? - EY regular presentation
PE/VC quarterly headline trends: investments

             US$m                                                                    Total PE/VC investments                                                                             #
                                                                                                                                                                  18,516
                                                                                     265          265          266                                                               266         300
 18,000                                                                234                                                                                         241
                                                                                                                           223         217                                                   250
 15,000                        194                       203
                    182                     188
                                                                                                                                                     243                                     200
 12,000                                                                                                                               13,450        10,569

  9,000                                                                                                                                                                                      150
                                                                                                16,025
  6,000                                                                                                                                                                                      100
                            11,146         9,699                     11,110                                  10,913                   9,567
                8,307                                   8,261                        9,250                                                                                       8,280
  3,000                                                                                                                   5,061                     1,776        4,585                       50
         -                                                                                                                                           349         1,022                       -
               1Q2018       2Q2018       3Q2018        4Q2018       1Q2019        2Q2019       3Q2019       4Q2019        1Q2020     2Q2020        3Q2020       4Q2020       1Q2021

                                               Value (US$m)             # of deals            Investment in Jio Platforms            Investment in Reliance Retail

             US$m                                                   PE/VC investments split across asset classes

                                                                                                                                                                      2,796
 16,000

                                                                                                    5,258                                    588                         4,497
                                                                                                                                                     70
 12,000                                                                                                                                                   511
                               1,695                                    2,871
                                840          895           218                                      2,511        3,090                                                                 360
  8,000                                      862                                      2,626
                1,659                                     1,450         1,490                                     765                                                                  1,444
                1,474                                                                 1,378                                                12,792
                                                                                                                                                                     11,224
                               8,610                                                                                         1,028                        9,698
  4,000                                     7,941                                                   8,256        7,058               320
                                                          6,593         6,749                                                                                                          6,477
                5,174                                                                 5,246
                                                                                                                             3,714
         -
               1Q2018       2Q2018        3Q2018        4Q2018        1Q2019         2Q2019       3Q2019        4Q2019      1Q2020       2Q2020        3Q2020        4Q2020         1Q2021

                                          PE/VC investment (other sectors) (US$m)                Real estate (US$m)          Infrastructure (US$m)

Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure

Page 6         15 April 2021               EY analysis of VCCEdge data
PE/VC quarterly headline trends: exits

             US$m                                                                     Total PE/VC exits                                                                                  #
                                                                                                                                                                                 56
  7,000             52          52                                                                                                                                                            60
  6,000                                                                              42                         42                                    42           44
                                             41
  5,000                                                                 36                          37                       37
                                                          32                                                                                                                                  40
  4,000                                                                                                                                  28
                                          18,016
  3,000
                               4,755                                                                                                                                            4,178         20
  2,000                                                                                          3,959        3,313
  1,000                                                 2,420                      2,658                                                                         2,296
                1,857                                                                                                      1,895
                                                                      1,192                                                            1,060          757
         -                                                                                                                                                                                    -
               1Q2018       2Q2018       3Q2018        4Q2018       1Q2019        2Q2019       3Q2019        4Q2019        1Q2020      2Q2020       3Q2020       4Q2020       1Q2021

                                                                                  Value (US$m)              # of exits

             US$m                                                         PE/VC exits split across asset classes

  7,000                                 9
                                       13
  6,000

  5,000
                                844
  4,000                          82                                                                                                                                                     766
                                                                                                             284
                                           17,994                                                                  348                                                                   90
  3,000                                                                                104
                                                           354                                201
  2,000             234                                                                                                           89                                    653
                               3,829                                                                3,674                          -
                    262                                                                                            2,958                                                              3,322
  1,000                                                   2,066            92         2,353                                                   302
                1,361                                                                                                         1,807                                     1,643
                                                                          967                                                                 758          754
         -
               1Q2018       2Q2018        3Q2018        4Q2018        1Q2019        2Q2019        3Q2019        4Q2019       1Q2020        2Q2020      3Q2020       4Q2020         1Q2021

                                                      Other sectors (US$m)           Real estate (US$m)            Infrastructure (US$m)
Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure

Page 7         15 April 2021                EY analysis of VCCEdge data
PE/VC quarterly headline trends: fundraise

             US$m                                                                  Fundraise                                                                 #

  4,000                                  17                                                                                                                      20
                                                                             15                    15                                                15
                                                                  14                                                               14
  3,000                                                                                                        13                                                15
                                12                                                      12
                    11                               11
                                                                                                                                            10
  2,000                                                                                          3,809                                                           10
                                                                                                                                           3,869
                                                                2,794                                                      5      2,768
                                       2,607       2,479                   2,749
  1,000                                                                               2,335                                                                      5
                               1,701                                                                         1,430                                  1,713
                1,304
                                                                                                                          171
         -                                                                                                                                                       -
               1Q2018     2Q2018       3Q2018     4Q2018      1Q2019      2Q2019     3Q2019     4Q2019      1Q2020       2Q2020   3Q2020   4Q2020   1Q2021

                                                                Total funds raised (US$m)      Total # of funds raised

Page 8         15 April 2021            EY analysis of VCCEdge data
Investments (excluding infrastructure and real estate)

                             Total investments (US$m)                                                                               # of deals

                  1Q2021                                         6,477                                                  1Q2021                                     239
                  4Q2020                                                         11,224                                 4Q2020                                220
                  1Q2020                           3,714                                                                1Q2020                              203

                             Deal type US$m                                                                                         Deal type #

                                  419                                                                                                         18
         Credit investment      99                                                                            Credit investment          7
                                 278                                                                                                          19
                                  501                                                                                                   4
                   Buyout                          2,515                                                                 Buyout           11
                                84                                                                                                      3
                                118                                                                                                      8
                     PIPE*       262                                                                                       PIPE*           14
                                   565                                                                                                      17
                                            2,032                                                                                                                159
    Start-up/Early stage                 1,378                                                             Start-up/Early stage                               144
                                         1,356                                                                                                             127
                                                         3,408                                                                                        50
      Expansion/Growth                                                      6,969                            Expansion/Growth                       44
                                          1,430                                                                                                    37

                             Deal size US$m                                                                                         Deal size #

                                                     3,562                                                                                    15
               >US$100m                                                      9,010                                   >US$100m                  21
                                      1,236                                                                                               8
                                     995                                                                                                      13
     US$50m-US$100m                   1,146                                                                 US$50m-US$100m                    14
                                     972                                                                                                      14
                                     1,094                                                                                                          33
      US$20m-US$50m                499                                                                       US$20m-US$50m                     17
                                    808                                                                                                          24
                                  439                                                                                                              31
      US$10m-US$20m              202                                                                         US$10m-US$20m                    14
                                  354                                                                                                            23
                                  386                                                                                                                              118
Investments: infrastructure

                             Total investments (US$m)                                                                # of deals

                  1Q2021                  360                                                            1Q2021                                        9
                  4Q2020                                                           2,796                 4Q2020                                8
                  1Q2020                              1,028                                              1Q2020                                        9

                             Deal type US$m                                                                          Deal type #

                                    51                                                                                                 2
       Credit investment        -                                                               Credit investment       -
                                               602                                                                                     2
                                    150                                                                                            1
                   Buyout                                              2,075                               Buyout                                  5
                                    127                                                                                                    3
                                    157                                                                                                2
                     PIPE*      -                                                                           PIPE*       -
                                -                                                                                                  1
                                2                                                                                                  1
    Start-up/Early stage        19                                                            Start-up/Early stage                 1
                                3                                                                                                  1
                                -                                                                                                          3
      Expansion/Growth                          702                                            Expansion/Growth                        2
                                         296                                                                                           2

                             Deal size US$m                                                                          Deal size #

                                         259                                                                                               3
              >US$100m                                                          2,758                 >US$100m                                     5
                                                     939                                                                                   3
                                -                                                                                       -
     US$50m-US$100m             -                                                             US$50m-US$100m            -
                                -                                                                                       -
                                    99                                                                                                     3
      US$20m-US$50m             -                                                               US$20m-US$50m           -
                                    86                                                                                                 2
                                -                                                                                       -
      US$10m-US$20m              37                                                             US$10m-US$20m                          2
                                -                                                                                       -
                                2                                                                                                  1
Investments: real estate

                             Total investments (US$m)                                                                  # of deals

                  1Q2021                          1,444                                                    1Q2021                                                           18
                  4Q2020                                                         4,497                     4Q2020                                              13
                  1Q2020             320                                                                   1Q2020                                         11

                             Deal type US$m                                                                            Deal type #

                                11                                                                                            1
       Credit investment        5                                                                 Credit investment           1
                                -
                                    416                                                                                                   5
                   Buyout                                              4,306                                 Buyout                       5
                                 82                                                                                           1
                                  110                                                                                         1
                     PIPE*      -                                                                             PIPE*       -
                                 65                                                                                           1
                                6                                                                                             1
    Start-up/Early stage        6                                                               Start-up/Early stage          1
                                15                                                                                                                7
                                       901                                                                                                                         10
      Expansion/Growth            179                                                            Expansion/Growth                             6
                                  158                                                                                             2

                             Deal size US$m                                                                            Deal size #

                                            948                                                                                                                5
              >US$100m                                                 4,235                            >US$100m                                      4
                                      355                                                                                                                               6
     US$50m-US$100m                  223                                                        US$50m-US$100m                                3
                                     305                                                                                                              4
                                    116                                                                                                               4
      US$20m-US$50m             -                                                                 US$20m-US$50m           -
                                11                                                                                                1
      US$10m-US$20m             27                                                                US$10m-US$20m                       2
                                14                                                                                                    2
Investments: sector-wise

                 Top sectors by value (US$m)                                                                             Top sectors by # of deals

                                                                                                                                                                  50
                                                  1,751                                                           Financial services                      34
               E-commerce                      1,319                                                                                                        39
                                         529
                                                                                                                                                                 45
                                                1,450                                                                  E-commerce                     29
          Financial services             642                                                                                                         25
                                           1,067
                                                                                                                                                     25
                                                1,444                                                                     Education            17
                 Real estate                                              4,497                                                                16
                                       320                                                                                                           24
                                                                                                                        Technology                         35
                                        668                                                                                                               31
                   Education          270
                                       550                                                                                                    18
                                                                                                                        Real estate         13
                                       524                                                                                                 11
           Pharmaceuticals                1,083
                                      219                                                                                                       16
                                                                                                            Media and entertainment           12
                                       725                                                                                                     14
Media and entertainment              246                                                                                                       15
                                    27                                                               Retail and consumer products              16
                                                                                                                                              13
                                       360
             Infrastructure                                2,796                                                                              12
                                             1,028                                                                 Pharmaceuticals        9
                                                                                                                                          9
                                       304
                 Technology                  992                                                                                          9
                                      180                                                                             Infrastructure      8
                                                                                                                                          9
                                             1,054                                                                                                                    52
                       Others                                                              6,672                             Others                                         68
                                              1,141                                                                                                                    56

                                                                                    1Q2021         4Q2020          1Q2020

* In 4Q2020, others includes US$4.8 billion invested in Retail sector, mainly in Reliance Retail

Page 12       15 April 2021                 EY analysis of VCCEdge data
Top PE/VC investments

Top PE/VC investments excluding infrastructure and real estate in 1Q2021

Company                            PE investors                                   Sector                  Stage               US$m   Stake (%)
Think and Learn Private Limited B Capital, Baron Global Advantage Fund, Arison
                                                                               Education                  Growth capital       460         NA
(BYJU’s)                        Holdings and others
Sporta Technologies Private        Steadview Capital, Tiger Global, TPG,          Media and
                                                                                                          Growth capital       400         NA
Limited (Dream11)                  ChrysCapital, Falcon Edge Capital and others   entertainment
Altico Capital India Limited       Ares Management                                Financial services      Buyout               380        100
BrainBees Solutions Private
                                   ChrysCapital, TPG, PremjiInvest                E-commerce              Growth capital       313         NA
Limited (FirstCry)
Trustroot Internet Private         Altimeter Capital, GGV Capital, DST Global,
                                                                                  E-commerce              Start-up             280         NA
Limited (Udaan)                    Lightspeed Venture, Tencent and others
                                   Tiger Global, Kora Investments, Steadview,
Zomato Private Limited                                                            E-commerce              Growth capital       250         NA
                                   Fidelity, and others
Five Star Business Finance
                                   KKR, Sequoia, Norwest Ventures, TVS Capital    Financial services      Growth capital       234         NA
Limited
                                                                                  Business and
Indegene Private Limited           Carlyle and Brighton Park Capital                                      Growth capital       200         NA
                                                                                  professional services
Oyo Hotels (Singapore) Pte
                                   Softbank Ventures                              E-commerce              Credit investment    200         NA
Limited
Airtel Africa’s mobile money biz   TPG Capital Inc.(Rise Fund)                    Telecommunications      Growth capital       200         NA
Stelis Biopharma Private Limited Asia Healthcare Holdings, and others             Pharmaceuticals         Growth capital       195         NA
Zetwerk Manufacturing              Sequoia Capital, KAE Capital, Greenoaks Capital,
                                                                                    E-commerce            Start-up             120         NA
Businesses Private Limited         Lightspeed Venture
ZCL Chemicals Limited              Advent International                           Pharmaceuticals         Buyout               117         51
Resilient Innovations Private      Insight Venture, Steadview Capital, Sequoia
                                                                                  Financial services      Start-up             108         12
Limited                            Capital, and others
                                   Dragoneer Investment, Tiger Global, Mubadala
Innovaccer Inc.                                                                   Healthcare              Start-up             105         NA
                                   Investment, Steadview Capital and others

Page 13    15 April 2021           EY analysis of VCCEdge data
Top PE/VC investments

Top infrastructure and real estate investments in 1Q2021

Company                                                            PE investors                                Sector                Stage            US$m   Stake (%)
RMZ Corp, construction projects JV                                 CPPIB                                       Real estate           Growth capital    340         NA
Gardencity Realty, 1.65 M sq. ft at Bengaluru IT
                                                                   Ascendas Property Fund                      Real estate           Buyout            200        100
park
Phoenix Group’s 2 IT-SEZ projects in Hyderabad                     Varde Partners                              Real estate           Growth capital    158         NA
Sterlite Power Transmission Limited, 5 energy
                                                                   AMP Capital Investors                       Power and utilities   Buyout            150         50
transmission projects
Phoenix's IT-SEZ,1.1 M sq. ft                                      GIC                                         Real estate           Growth capital    143         NA
Godrej Properties Limited                                          GIC                                         Real estate           PIPE              110          2
Adani Ports and Special Economic Zone Limited                      Warburg Pincus                              Infrastructure        PIPE              109        0.5
Phoenix IT Infra’s property in Hyderabad                           Ascendas India Trust                        Real estate           Buyout             69        100
Prius Commercial Projects                                          Kotak Special Situations Fund               Real estate           Buyout             61        100
Phoenix Group’s, building aVance 6                                 Ascendas India Trust                        Real estate           Buyout             60        >50

Real estate includes deals across real estate (residential and commercial), hospitality and construction
Infrastructure includes deals across roads, ports, railways, power and utilities, renewables and telecom infrastructure

Page 14       15 April 2021                EY analysis of VCCEdge data
Exits: quarterly analysis

                                  Total exits (US$m)                                                                       # of deals

                    1Q2021                                                             4,178                   1Q2021                                                                    56
                    4Q2020                                            2,296                                    4Q2020                                                          44
                    1Q2020                                       1,895                                         1Q2020                                                     37

                                  Exit type US$m                                                                           Exit type #

                                                                         1,069                                                                                                 22
                Open market                          470                                                   Open market                                               15
                                                    410                                                                                                         13
                                                     489                                                                                                        13
                  Secondary                                      834                                         Secondary                                 9
                                         25                                                                                                       6
                                                                                        1,823                                                          9
                    Strategic                          601                                                    Strategic                                     12
                                                   397                                                                                                       13
                                                    435                                                                                   3
                    Buyback                       340                                                          Buyback                            6
                                         64                                                                                                   4
                                                    361                                                                                                9
                            IPO          51                                                                         IPO               2
                                                                       1,000                                                      1

                       Top sectors US$m                                                                                    Top sectors #

                                                                            1,185                                                                          14
           Financial services            98                                                           Financial services                              10
                                                                                    1,706                                                                  14
                                                                       1,048                                                                      9
                E-commerce            63
                                     7                                                          Media and entertainment           2
                                                                766                                                               2
              Infrastructure         -                                                              Retail and consumer                       6
                                         89                                                                                       2
                                                          561                                             products            -
    Media and entertainment          43
                                     24                                                                                                       6
                                               276                                                         E-commerce                     4
Retail and consumer products                   271                                                                                1
                                     -                                                                                                    5
                                          136                                                                Chemicals            1
                  Chemicals              88                                                                                       1
                                     -
                                              206                                                                                                           16
                      Others                                                        1,734                       Others                                                    25
                                                                      945                                                                                                           32

Page 15     15 April 2021                     EY analysis of VCCEdge data
Top exits

Top exits in 1Q2021

Company                          Sector                  Sellers                   Buyer                     Exit type     US$m    Stake (%)
BigBasket                        E-Commerce              Alibaba, IFC and Abraaj   TATA Group                Strategic     1,000         50
                                                                                   Adani Ports and Special
Gangavaram Port Limited          Infrastructure          Warburg Pincus                                      Strategic      761          32
                                                                                   Economic Zone Limited
SBI Cards and Payment
                                 Financial Services      Carlyle                   NA                        Open market    542           4
Services Limited
                                 Media &
Bharti Telemedia Limited                                 Warburg Pincus            Bharti Airtel Limited     Buyback        430          20
                                 Entertainment
Five Star Business Finance                                                         KKR, Sequoia, Norwest
                                 Financial Services      Morgan Stanley                                      Secondary      234          NA
Limited                                                                            Ventures, TVS Capital
Crompton Greaves Consumer        Retail and Consumer
                                                     Advent International          NA                        Open market    205           6
Electricals Limited              Products
Indigo Paints                    Chemicals               Sequoia                   NA                        IPO             87           9
Max Financial Services Limited   Financial Services      KKR                       NA                        Open market     86           4
Home First Finance Company                               Bessemer Venture, True
                                 Financial Services                                NA                        IPO             78          12
India Limited                                            North

Page 16     15 April 2021        EY analysis of VCCEdge data
Fundraise

Top fundraise in 1Q2021

Status              Fund                                       US$m Strategy
Raised              Kotak Real Estate Fund XI                   380 Early- and late-stage real estate projects (Debt funding)
Raised              Godrej Fund Management - Office Platform    250 Office buildings
Raised              TVS Shriram Growth Fund 3                   212 Sector agnostic
Raised              Sequoia Capital Seed Fund - II              195 Early stage start-ups
Raised              Tata Capital Growth Fund II                 168 Strategic services, urbanisation and discrete manufacturing.
Raised              Trifecta Capital - Second Fund              140 Venture Debt – Start-ups
Raised              Fireside Ventures - Fund II                 118 Early Stage - Consumer

Page 17   15 April 2021          EY analysis of VCCEdge data
How soon after
   investment should you
   begin planning the exit?
   EY helps clients begin with the end in
   mind to help them improve returns

   Monthly trend analysis:
   March 2021

The better the question. The better the answer.
The better the world works.
Key trends

Investments

►   PE/VC investments in March 2021 were more than four times the value in March 2020 and more than twice
    compared to February 2021 (US$4.6 billion in March 2021 vs. US$885 million in March 2020 and US$2.1
    billion in February 2021). The growth was mainly on account of large investments which were absent last
    year in wake of sharp decline in investment sentiment as the COVID-19 pandemic grew severe.

►   From the point of view of deal type, growth deals recorded the highest value of investments in March 2021
    at US$2.8 billion across 29 deals, compared to just US$211 million across 13 deals in March 2020. Buyouts
    which were the most affected last year were the second highest at US$741 million across seven deals
    followed by start-up investments at US$475 million across 51 deals.

►   March 2021 recorded 13 large deals (deals of value greater than US$100 million) aggregating US$3.1
    billion compared to just one large deals worth US$112 million in March 2020.

►   From a sector point of view, financials services was the top sector in March 2021 with US$1.1 billion in
    PE/VC investments followed by real estate sector with investments worth US$902 million and e-commerce
    with investments worth US$750 million.

Page 19   15 April 2021   EY analysis of VCCEdge data
Key trends

Exits

►   March 2021 recorded 27 exits worth US$2 billion, over 80% higher than the value of exits in March 2020
    (US$1.1 billion) and 7% higher compared to February 2021 (US$1.9 billion). Strategic exits in March 2021
    were highest at US$823 million across four deals.

►   The largest exit in 1Q21 saw Warburg Pincus sell 31.5% stake in Gangavaram Port Limited for US$761
    million to Adani Ports and Special Economic Zone Limited.

Fundraise

►   March 2021 recorded total fundraises of US$479 million compared to US$85 million raised in March 2020.

Page 20   15 April 2021   EY analysis of VCCEdge data
PE/VC monthly headline trends: investments

                                                                            Total PE/VC investments
          US$m                                                                                                                                                                  #
                                                                                                                                                                                    120
 8,000                                                                                                 92
                                                     6,873                                                                                                              98
                                                                               83          83                                                81            87                       100
                             76                                   77
 6,000           71                    5,439                                                                                     77
                                                                                                                   72                                                               80
                                        60            81                                             7,545        3,864
 4,000                                                                                    4,289                                                                                     60
                                                                                                                               7,108
                                                                              2,210                                                                                                 40
                                       4,649         4,917                                                                                                             4,566
 2,000                                                           4,070                               3,303        1,282
                                                                                                                                                          2,100                     20
                 885        1,138                                                        1,776                    1,022                     1,614
      -                                                                 349                                                                                                         0
            Mar-20      Apr-20         May-20        Jun-20     Jul-20      Aug-20       Sep-20      Oct-20       Nov-20      Dec-20        Jan-21    Feb-21        Mar-21

                                     Value (US$m)             # of deals            Investment in Jio Platforms            Investment in Reliance Retail

 US$m                                                           PE/VC investments: split across asset classes

          US$m

 8,000
 7,000                                                 379                                                  685
                                                                                                                                      936
 6,000                                                                                                  2,094
                                                 5
 5,000                                                                                                                             2,398                                       109
                                                                      298                     226
 4,000                                                                                         -                                                                              902
 3,000                                                6,428                                                          1,175
                                        5,434                                   270                     4,766                                                     73
 2,000                                                            3,757                 62 4,064                                   3,774           177           451         3,555
                  3 8        208                                                                                     2,684
 1,000                                                                         1,877                                                               90           1,575
                 875         930                                                                                                                  1,347
     -
             Mar-20         Apr-20      May-20        Jun-20      Jul-20       Aug-20       Sep-20      Oct-20      Nov-20         Dec-20      Jan-21        Feb-21          Mar-21
                                    PE/VC investments (other sectors) (US$m)                 Real estate (US$m)             Infrastructure (US$m)

Page 21     15 April 2021               EY analysis of VCCEdge data
PE/VC monthly headline trends: exits

                                                                             Total PE/VC exits
          US$m                                                                                                                                                            #
 3,000                                                                                                                                                            27          30
                                                                                                                                                    20                        25
                                                                                                                19
 2,000                                                                      15                                                                                                20
                                                                                        14                                  13
                                      11                                                            12                                                                        15
                 9                                10               9                                                                   9
 1,000                       5                                                                                                                     1,869         1,996        10
             1,105                                                                                              974        1,034       313                                    5
                            117                   657         134           67          556
      -                               286                                                           288
                                                                                                                                                                              0
            Mar-20      Apr-20       May-20     Jun-20       Jul-20       Aug-20     Sep-20       Oct-20       Nov-20      Dec-20   Jan-21         Feb-21        Mar-21

                                                                          Value (US$m)            # of exits

 US$m                                                              PE/VC exits: Split across asset classes

      US$m
 3,000

 2,000                                                                                                                                                      28
                                                                                                                                                                         766
                 89                                                                                                                                                            62
 1,000                                                                                                                                                   1,841
                                                                                              -                      524
                                                     -                                                                                                                 1,168
             1,016                                  302                                                  129                   1,034
                             117        -                          134           2 65     556            159
                                       286          355             -                                                450                     313
      -
             Mar-20         Apr-20   May-20       Jun-20       Jul-20       Aug-20      Sep-20       Oct-20      Nov-20       Dec-20       Jan-21        Feb-21        Mar-21
                                              Other sectors (US$m)            Real estate (US$m)           Infrastructure (US$m)

Page 22     15 April 2021            EY analysis of VCCEdge data
PE/VC monthly headline trends: fundraise

                                                                          Fundraise
          US$m                                                                                                                                 #
 3,500                                                                                                                                             10
                                                                                                                      8
 2,800                                                                                                                                             8
                                                               6                                                                        6
 2,100                                                                                                                                             6
                                                                     4            4      4                      4
 1,400           3                             3                                                                                                   4
                                   2                     2195                                      2        2,374
   700                                                                                1,476                                    1                   2
                            -                                                                                        854
                 85                50         121                   480        93                  20                         380      479
      -                                                                                                                                            0
                           -
            Mar-20      Apr-20   May-20     Jun-20       Jul-20    Aug-20    Sep-20   Oct-20    Nov-20     Dec-20   Jan-21   Feb-21   Mar-21

                                                      Total funds raised (US$m)       Total # of funds raised

Page 23     15 April 2021        EY analysis of VCCEdge data
PE/VC investments: US$3,555 million over 85 deals (excluding
infrastructure and real estate investments)
                                Top sectors by value US$m                                         Top sectors by volume

                         Financial services                             1,059                  Financial services                  22

                               E-commerce                                                           E-commerce                14
                                                                   750
                                                                                                     Technology             11
                                     Education                495
                                                                                                      Education         7
                Media and entertainment                    408
                                                                                       Media and entertainment          6
                           Pharmaceuticals              248                                     Pharmaceuticals         5
                                        Others                 595                                         Others                  20

                           Deal value US$m (volume)                                                 Deal type US$m (volume)
                                                                                                                                          2349 (24)
                                                                       2382 (8)

                                      508 (14)                                                   384 (3)                     470 (50)
                                                       413 (6)                     312 (6)
   136 (39)          115 (9)                                                                                   40 (2)

  US$100m      Credit      Buyout         PIPE         Start-up/     Growth
                   US$20m             US$50m         US$100m                      investment                                Early stage    capital
RCP : Retail and consumer products

Page 24      15 April 2021               EY analysis of VCCEdge data
Infrastructure and real estate investments: US$ 1,012 million
over 13 deal
                                       By value US$m                                                      By volume

                               Real estate                                    902               Real estate                            12

                                                                                              Infrastructure         1
                             Infrastructure         110

                         Deal value US$m (volume)                                              Deal type US$m (volume)

                                                                    717 (5)                                                                 419 (5)
                                                                                             357 (4)

                                                                                                          220 (2)

                                                   186 (3)
                                    93 (3)
     6 (1)          11 (1)                                                          11 (1)                                  6 (1)

 US$100m       Credit     Buyout           PIPE        Start-up/         Growth
                  US$20m          US$50m         US$100m                       investment                                Early stage        capital

Page 25      15 April 2021           EY analysis of VCCEdge data
Top PE/VC investments

Top PE/VC investments excluding infrastructure and real estate in March 2021

Company                        PE Investors                                    Sector               Stage            US$m   Stake (%)
Think and Learn Private        B Capital, Baron Global Advantage Fund,
                                                                               Education            Growth capital    460        NA
Limited (BYJU’s)               Arison Holdings and others

Sporta Technologies Private    Steadview Capital, Tiger Global, TPG,        Media and
                                                                                                    Growth capital    400        NA
Limited (Dream 11)             ChrysCapital, Falcon Edge Capital and others entertainment

Altico Capital India Limited   Ares Management                                 Financial services   Buyout            380       100

BrainBees Solutions Private
                               ChrysCapital, TPG, PremjiInvest                 E-commerce           Growth capital    313        NA
Limited (FirstCry)

Five Star Business Finance
                               KKR, Sequoia, Norwest Ventures, TVS Capital Financial services       Growth capital    234        NA
Limited

Oyo Hotels (Singapore) Pte                                                                          Credit
                               Softbank Ventures                               E-commerce                             200        NA
Limited                                                                                             Investment

Airtel Africa’s mobile money
                               TPG (Rise Fund)                                 Telecommunications   Growth capital    200        NA
biz
                               Asia Healthcare Holdings, Route One
Stelis Biopharma Private
                               Investment L.P, Think Investments LP and        Pharmaceuticals      Growth capital    195        NA
Limited
                               others
                               Greycroft Partners, B Capital, Meritech
Icertis Inc.                                                                 Technology             Growth capital     80        NA
                               Capital, PremjiInvest, PSP Capital and others

PB Fintech Private Limited,
                               Falcon Edge                                     Financial services   Growth capital     75        NA
UAE Biz (PolicyBazaar)

Page 26        15 April 2021    EY analysis of VCCEdge data
Top infrastructure and real estate investments

Top infrastructure and real estate investments in March 2021

Company                        PE investors                    Sector           Stage            US$m   Stake (%)
Gardencity Realty, 1.65 M sq
                               Ascendas Property Fund          Real Estate      Buyout            197        100
ft at Bengaluru IT park
Phoenix Group’s 2 IT-SEZ
                               Varde Partners                  Real Estate      Growth capital    158         NA
projects in Hyderabad

Phoenix's IT-SEZ,1.1 M sq ft   GIC                             Real Estate      Growth capital    143         NA

Godrej Properties Limited      GIC                             Real Estate      PIPE              110          2

Adani Ports and Special
                               Warburg Pincus                  Infrastructure   PIPE              109        0.5
Economic Zone Limited

Page 27    15 April 2021        EY analysis of VCCEdge data
Exits: US$1,996 million across 27 deals in March 2021

                                                                              Exits in March 2021

                              Deal value US$m (volume)                                                      Deal value US$m (volume)
                                                                                                                    823 (4)

           Financial services                                                    949 (9)
                                                                                                                                          588 (9)

                 Infrastructure                                             766 (2)
                                                                                                                               384 (7)

Media and entertainment                        67 (3)
                                                                                               196 (6)

                              RHC*             62 (2)
                                                                                                           5 (1)

                            Others                 152 (11)                                         IPO   Buyback   Strategic Secondary   Open
                                                                                                                                          market

* Real Estate, hospitality and construction

Page 28       15 April 2021                   EY analysis of VCCEdge data
Top exits

Top exits in March 2021

 Company                      Sector                         Sellers                Buyer                   Exit type     US$m   Stake (%)
                                                                                    Adani Ports and Special
 Gangavaram Port Limited      Infrastructure                 Warburg Pincus                                 Strategic      761         32
                                                                                    Economic Zone Limited
 SBI Cards and Payment
                              Financial services             Carlyle                NA                      Open market    542          4
 Services Limited
 Five Star Business Finance                                                         KKR, Sequoia, Norwest
                              Financial services             Morgan Stanley                                 Secondary      234         NA
 Limited                                                                            Ventures, TVS Capital
 Nazara Technologies          Media and                      IIFL Asset Management
                                                                                   NA                       IPO             67         14
 Limited                      entertainment                  (NFS)
                                                                                    Mapletree Logistics
 2 logistics parks, KSH Infra Real estate                    Morgan Stanley                                 Strategic       62        100
                                                                                    Trust (MLT)
 Craftsman Automation                                        Sequoia and Standard
                              Automotive                                            NA                      IPO             60         14
 Limited                                                     Chartered PE
 India Shelter Finance
                              Financial services             Sequoia                Westbridge Capital      Secondary       60         17
 Corporation Limited

Page 29   15 April 2021        EY analysis of VCCEdge data
Fundraise

Top fundraise/announcements in March 2021

 Status                   Fund                                     US$m Strategy
 Raised                   Sequoia Capital Seed Fund - II          195.00 Early stage start-ups
 Raised                   Trifecta Capital - Second Fund          140.00 Venture Debt – Start-ups
 Raised                   Fund1X - Blume and Avendus Capital JV    48.00 Large portfolio companies
 Announced                Actis Energy 5 LP fund                  850.00 Solar and wind power parks
 Announced                Edelweiss Pre IPO Fund                  700.00 Pre IPO and late stage companies
 Announced                Edelweiss arm - 2 Credit funds          273.50 Distressed assets
 Announced                IIFL AMC Fund                           273.50 Late stage and pre-IPO - Tech start-ups
 Announced                FD7 Ventures                            250.00 Early-stage start-ups - Cryptocurrency

Page 30   15 April 2021           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
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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
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►   EY’s India Private Equity Services Practice has been among the top advisors for private equity
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►   EY’s India Private Equity Services Practice provides value to PE funds and their portfolio
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Page 32    15 April 2021        EY analysis of VCCEdge data
EY 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
 (Marketing collateral, fund structuring,                                                                  design and review, tax and regulatory
 audit of fund performance)                                                                                compliance)

                                                                          Funds
 Buy and sell side advisory
 (M&A, capital markets support, tax                                                                        Buyside support
 structuring, regulatory compliance, SPA                              Transaction                          (Due diligence – financial, tax, business and
 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
 mandates, exit structuring)                        Assurance                                              advisory, standard operating procedures, CFO
                                                    (Statutory audit, tax compliance, risk management,     services and compliance manager)
                                                    corporate governance advisory, internal audits and
                                                    fraud reviews)

 Distressed                                         Tax and Legal                                          Growth
 (Debt syndication, bank intermediation,            (Tax advisory, tax accounting, ESOP advisory, global   (Strategic options, technology security, IT
 restructuring, working capital                     mobility, transfer pricing and operating model         strategy, operational improvement, SCM,
 management, cost reduction, insolvency             effectiveness, tax policy and litigation, regulatory   market entry options and working capital
 and bankruptcy advisory)                           compliance)                                            management)

Page 33    15 April 2021           EY analysis of VCCEdge data
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About IVCA
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About IVCA
The Indian Private Equity & Venture Capital            Rajat Tandon              Aakriti Bamniyal
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