In today's frenetic world, how does private equity set the pace?

 
In today's frenetic world, how does private equity set the pace?
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 –
   December 2019

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?
Our thoughts

“
“2019 was third consecutive record-breaking year for PE/VC investments in India.
At ~US$48 billion, PE/VC investments equated to approx. 1.7% of the GDP, which is
similar to the Chinese benchmark in 2018. Private capital investments in India have
grown at a CAGR of almost 44% over the past three years, and this asset class now
appears to have come of age in India.

The headline trends of 2019 include infrastructure sector emerging as a stand out
sector in 2019, accounting for ~30% of all PE/VC investments. Also, for the first-
time, buyouts emerged as the largest deal type, accounting for over one-third of
PE/VC investments. Going forward, while our outlook for 2020 is positive, we
expect investment growth to slow down to about 15%-20% in 2020. We expect most
PE/VC investors to continue investing in financial services, IT, e-commerce, retail
consumer finance and healthcare. Infrastructure and real estate should continue to
attract strong interest from real asset economy investors.

We expect 2020 to be a good year for exits because a huge stock of small and mid-
cap companies has built up over the past 18 months where PE/VC investors have a
substantial stake. Whether or not an IPO window opens, we expect to see more
secondary deals in 2020.

By our estimates, with close to US$50 billion in dry powder waiting to be deployed
in India, the long-term growth story of Indian PE/VC market remains positive.”

Page 2     23 January 2020       EY analysis of VCCEdge data
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   Yearly trend analysis – 2019

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?
Key trends: yearly

Investments

►    PE/VC investments in 2019 were at an all-time high in terms of both value and volume. In terms of value, at US$48 billion, PE/VC
     investments in 2019 grew by 28% over last year (US$37.4 billion in 2018), mainly on account of significant investments in the
     infrastructure sector which alone accounted for 30% of all investments by value in 2019 compared to 12% in 2018.

►    In terms of volume, 2019 recorded 1,037 deals, ~35% increase over last year (769 deals in 2018), 60% of which were in the start-up
     space. In terms of number of deals, start-ups recorded a 61% increase in deal activity in 2019 compared to last year (378 deals in
     2018).

►    From an asset class perspective, pure play PE/VC investments recorded a decline of 3% while there was a significant increase in
     investments in the infrastructure and real estate asset classes which recorded an increase of 225% and 33%, respectively, on a y-o-y
     basis. 2019 recorded the highest ever value of PE/VC investments in the infrastructure (US$14.5 billion vs. US$4.5 billion in 2018) and
     real estate (US$6.1 billion vs. US$4.6 billion in 2018) sectors.

►    2019 has been a record year for investments across all deal types, the most prominent being buyouts. For the first time, buyout have
     emerged as the primary PE/VC deal type, overtaking growth capital deals and accounting for 34% of all PE/VC investments by value in
     2019.

►    Buyout activity in Indian PE/VC industry has grown from strength-to-strength as India moves towards global norms where buyouts are
     usually the largest deal type of PE/VC investment. When compared across deal types, buyouts have recorded the largest increase of 56%
     in terms of value (US$16.2 billion in 2019 vs. US$10.4 billion in 2018). In the past two years, buyouts clocked US$26.7 billion in deal
     value, which is more than the value of buyouts in the preceding 12 years combined. Also, number of buyouts in 2019 (58 deals) are the
     highest ever. Once again, this has been driven by significant increase in the value (180% increase y-o-y) and number (123% increase y-o-
     y) of buyouts in the infrastructure and real estate sectors. Buyouts in the traditional PE/VC space however recorded declines in both
     value (26% decline y-o-y) and volume (19% decline y-o-y) in 2019.

Note: The data includes deals that are announced but are awaiting closure like Abu Dhabi Investment Authority (ADIA), Public Sector Pension Investment Board (PSP), Caisse de dépôt et
placement du Québec (CDPQ) and National Investment and Infrastructure Fund’s (NIIF’s) investment in GVK

Page 4        23 January 2020            EY analysis of VCCEdge data
In today's frenetic world, how does private equity set the pace?
Key trends: yearly

Investments (cont’d.)

►    Growth capital investments, at US$14.5 billion, recorded modest increase of 9% in 2019 (US$14.2 billion in 2018). This too was
     primarily on account of increase in growth investments in infrastructure and real estate sectors which rose by 136% (US$7.3 billion in
     2019 vs. US$3.1 billion in 2018) in terms of value and 97% in terms of volume (59 deals in 2019 vs. 30 deals in 2018). Pure play PE/VC
     growth capital investments recorded a decline of 26% in terms of value and 13% in terms of volume.

►    Start-up investments in 2019 were the highest ever in terms of value and volume. 2019 recorded start-up investments worth US$7.9
     billion, 22% higher compared to 2018 (US$6.5 billion). Softbank’s investment of US$810 million in OYO was the largest start-up
     investment in 2019.

►    At US$5.3 billion, PIPE investments increased by 40% on a y-o-y basis while credit investments at US$3 billion increased by 20%.

►    As the Indian market matures, PE/VC deals are becoming larger and more complex. There were 111 large deals (value greater than
     US$100 million) in 2019, aggregating to US$35.2 billion and accounting for 73% of total PE/VC investments made in 2019 compared to
     81 large deals aggregating US$27.9 billion in 2018. The value and volume of large deals have been progressively increasing over the
     past four to five years.

►    The largest deals during the year saw Brookfield buyout Reliance Jio’s tower arm for US$3.7 billion and Reliance Industries Limited’s
     East-West pipeline for US$1.9 billion. Brookfield-Reliance Jio’s tower deal was also the largest ever deal in the Indian PE/VC industry.

Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 5        23 January 2020            EY analysis of VCCEdge data
In today's frenetic world, how does private equity set the pace?
Key trends: yearly

Investments (cont’d.)

►    From a sector point of view, most of the sectors recorded significant increase in PE/VC investments. In 2019, 10 sectors recorded over
     US$1 billion in PE/VC investments compared to nine in 2018. In 2019, infrastructure sector recorded the highest value of investments
     at US$14.5 billion (US$4.5 billion in 2018). Five of the top 10 deals in 2019 were in the infrastructure sector.

►    Notwithstanding recent headwinds faced by the Non-Banking Financial Company (NBFC) sector, PE/VC investment activity in the
     financial services sector has recorded healthy growth. In 2019, at US$9.1 billion, PE/VC investments in the financial services sector are
     up by 20% compared to last year. 2019 also recorded the highest ever number of deals in the sector. Further, the number of PE/VC
     deals in the financial services sector (188 deals) in 2019 is the highest number of deals recorded by any sector, topping the previous
     high of 184 deals recorded by the e-commerce sector in 2015. This was followed by real estate (US$6.1 billion across 71 deals), a 33%
     y-o-y increase and e-commerce (US$4.3 billion across 134 deals), which declined by 13% y-o-y.

Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 6        23 January 2020            EY analysis of VCCEdge data
Key trends: yearly

Exits

►    2019 recorded 156 PE/VC exits worth US$11.5 billion, a decline of ~58% from 2018 (US$27 billion). PE/VC exits in 2018 included the US$16
     billion Walmart-Flipkart deal, India’s largest ever PE/VC exit. Adjusting for this one-off deal, PE/VC exits in 2019 have increased by 4%.

►    With the rebound in capital markets, open market exits have recorded an increase of 171% in 2019 compared to last year. In terms of mode of
     exit, open market exits were the highest in 2019, at US$4.6 billion, accounting for 41% of all exits by value and the second highest value of
     open market exits over the past 10 years. Secondary and strategic exits were next in line with deals worth US$2.5 billion and US$2.3 billion,
     respectively. These are however significantly lower compared to secondary and strategic exits worth US$5 billion and US$18.4 billion,
     respectively, recorded in 2018.

►    PE-backed IPOs recorded significant decline with eight IPOs worth US$247 million in 2019 compared to 13 IPOs worth US$876 million in 2019.

►    The largest exit in 2019 saw OYO’s founder undertake partial buyback of stakes worth around US$1.5 billion from Sequoia and Lightspeed
     followed by Fairfax selling its 10% stake in ICICI Lombard General Insurance Company Limited for US$732 million.

►    From a sector perspective, financial services (US$2.9 billion across 24 exits), e-commerce (US$1.9 billion across 10 exits), technology (US$1.7
     billion across 19 exits) were the top sectors for PE/VC exits in 2019.

Fund raise

►    2019 saw US$11.7 billion being raised across 56 fund raises by India focussed PE/VC funds, a 45% increase over 2018 and the highest ever
     annual raise by India dedicated funds. The fund raise plans announced stood at US$18.3 billion. This further reiterates India’s improving
     attractiveness for global Limited Partners’ (LP’s) and bullishness of India focused funds as the domestic PE/VC ecosystem flourishes.

►    The largest fund raise during the year saw Government of India sponsor a US$1.5 billion fund for providing last-mile funding to enable
     completion of construction of stalled housing projects, followed by Edelweiss Alternative Asset Advisors and Kotak Special Situations Fund
     raising US$1.3 billion and US$1 billion, respectively, to invest in stressed assets.

Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 7      23 January 2020             EY analysis of VCCEdge data
PE/VC yearly headline trends: investments

       US$b                                                                      Total PE/VC investments                                                         #
                                                                                                                                                         1,037   1200
 45
                                                                                                              767                                 769
                                                                                                                                       595                       800
 30                                                                                                                        588
                                              446             416                             469
                              372                                             392
 15           226                                                                                                                                                400

               4                8              10               8               9              12              20           16          26         37     48
  -                                                                                                                                                              0
              2009           2010            2011            2012            2013            2014            2015         2016         2017       2018   2019

                                                                                 Value (US$b)               # of deals

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

45.0
                                                                                                                                                         14.5
                                                                                                                                                   4.5
30.0                                                                                                                                               4.6    6.1
                                                                                                               1.8                      3.0
                                                                                                                            2.8         5.0
15.0                                                                            0.9            0.8             3.2
                                               2.3                                                                                                28.3   27.4
                                                               0.7                             2.1                          3.2
                               2.5                   1.5                                                      14.7                     18.2
               0.8                 1.1                               1.0              1.1                                  10.3
                               4.8             5.8             5.9             7.1             8.8
   -           2.8
              2009           2010            2011            2012            2013            2014            2015         2016         2017       2018   2019

                              PE/VC investments (other sectors) (US$b)                      Real estate (US$b)            Infrastructure (US$b)
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
Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 8        23 January 2020              EY analysis of VCCEdge data
PE/VC yearly headline trends: exits

            US$b                                                                      Total PE/VC exits                                                                       #
                                                                                                                254                         260                                   300
16.0
                                                                                                                             211                                                  250
12.0                                                                                            166                                                     177
                                 160                                                                                                                                              200
                                                                115             125                                                                                  156
  8.0               97                                                                                                                                                            150
                                                  91
                                                                                                                                                                                  100
  4.0
                                                                                                                                                                                  50
                    1.0              3.4          2.3           3.4             3.6              3.4             6.6         6.7            13.1        27.0         11.5
    -                                                                                                                                                                             0
                   2009         2010            2011           2012            2013            2014            2015         2016         2017           2018         2019

                                                                                  Value (US$b)              # of exits

            US$m                                                      PE/VC exits split across asset classes
                                                                                                                                                           1,088
16,000                                                                                                                                                         711
                                                                                                                                                  544
12,000                                                                                                                                            807                       243
                                                                                                                                                                            925
 8,000                                                                                                               263           126
                                                                                    77                                     279     763
                                      242                           42                              120
 4,000                                              185
                                      918                                                                   216
                     110
                                     2,289               267 3,320 81             3,207            3,106           6,056         5,795        11,702      25,249       10,316
                    821 20                         1,888
        -
                    2009             2010          2011           2012            2013             2014            2015          2016         2017         2018            2019

                                                  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
Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 9             23 January 2020           EY analysis of VCCEdge data
PE/VC yearly headline trends: fund raise

          US$b                                                              Fund raise                                                  #
                                                                                                                                  56
  12.0                                                                                                                     51               60
                                                                                                 41                 44                      50
                                                                                    36
   8.0                         32                                                                                                           40
                                                  26               29
                  23                                                                                                                        30
   4.0                                                                                                                                      20
                                                                                                                                            10
                 3.9          3.9                 2.2             3.6               6.4          4.3                5.8   8.1    11.7
     -                                                                                                                                      0
                 2011         2012               2013             2014          2015            2016            2017      2018   2019

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

Page 10     23 January 2020         EY analysis of VCCEdge data
PE/VC investments (excluding infrastructure and real estate)

                           Total investments (US$b)                                                                              # of deals

                   2019                                                            27.4                                  2019                                             915

                   2018                                                            28.3                                  2018                                      691

                           Deal type US$m                                                                                        Deal type #
                                       2.2                                                              Credit investment              67
   Credit investment                1.2                                                                                               51
                                                    4.6                                                                 Buyout       29
                 Buyout                                   6.3                                                                        36
                                                    4.8                                                                  PIPE*         56
                  PIPE*                       3.4                                                                                     43
                                                                7.6                                   Start-up/Early stage                                          590
Start-up/Early stage                                      6.4                                                                                          362
                                                                 8.2                                   Expansion/Growth                         173
   Expansion/Growth                                                         11.1                                                                 199

                           Deal size US$b                                                                                        Deal size #
                                                                  16.8                                         >US$100m                 68
          >US$100m                                                       20.0                                                          54
                                      3.7                                                             US$50m-US$100m                   49
 US$50m-US$100m                       3.3                                                                                             40
                                     3.7                                                               US$20m-US$50m                         105
  US$20m-US$50m                     2.7                                                                                                     83
                                  1.6                                                                  US$10m-US$20m                           111
  US$10m-US$20m                  1.1                                                                                                      75
                                  1.6
PE/VC investments: infrastructure

                           Total investments (US$b)                                                                                  # of deals

                   2019                                              14.5                                                     2019                                                       51

                   2018                    4.5                                                                                2018                                            25

                           Deal type US$b                                                                                            Deal type #

                                                                                                               Credit investment             3
    Credit investment          0.01                                                                                                     1
                                                                         8.0                                                Buyout                                   13
                 Buyout                   2.2                                                                                                    4
                                0.2                                                                                          PIPE*      1
                  PIPE*         0.1                                                                                                     1
                                0.2                                                                        Start-up/Early stage                  5
Start-up/Early stage           0.0                                                                                                                6
                                                             5.6                                              Expansion/Growth                                                     29
   Expansion/Growth                       2.1                                                                                                                        13

                           Deal size US$b                                                                                            Deal size #
                                                                               13.59                                  >US$100m                                                      23
           >US$100m                           4.26                                                                                                                       10
                                0.54                                                                        US$50m-US$100m                                       7
 US$50m-US$100m                0.14                                                                                                          2
                                0.25                                                                         US$20m-US$50m                                   6
  US$20m-US$50m                0.02                                                                                                      1
                               0.06                                                                          US$10m-US$20m                           4
  US$10m-US$20m                0.02                                                                                                      1
PE/VC investments: real estate

                            Total investments (US$b)                                                                              # of deals

                    2019                                                  6.1                                             2019                                                        71

                    2018                                         4.6                                                      2018                                             53

                            Deal type US$b                                                                                        Deal type #
                                   0.2                                                                       Credit investment                6
    Credit investment                              1.4                                                                                                    15
                                                                                  3.6                                   Buyout                                16
                 Buyout                                    2.0                                                                                    9
                                   0.3                                                                                   PIPE*            4
                   PIPE*          0.2                                                                                                 2
                                 0.1                                                                       Start-up/Early stage                           15
Start-up/Early stage             0.1                                                                                                              10
                                                         1.8                                                Expansion/Growth                                                    30
   Expansion/Growth                          1.0                                                                                                              17

                            Deal size US$b                                                                                        Deal size #
                                                                            4.8                                   >US$100m                                                                 19
          >US$100m                                                3.7                                                                                                                17
                                       0.8                                                                 US$50m-US$100m                                             11
US$50m-US$100m                       0.6                                                                                                                  7
                                                                                                           US$20m-US$50m                                          9
  US$20m-US$50m                    0.3                                                                                                                6
                                  0.2
                                                                                                           US$10m-US$20m                                      8
  US$10m-US$20m                  0.1                                                                                                                                  11
                                 0.2
2019 investments: sector-wise

          Top sectors by value (US$m)                                                                                       Top sectors by # of deals
                                                                          14,489
       Infrastructure                        4,467                                                                 Financial services                                              188
                                                                                                                                                                         143
                                                         9,103                                                               Technology                                      147
  Financial services                                  7,598                                                                                                            125

                                                                                                                            E-commerce                                  134
                                                 6,144                                                                                                            96
            Real estate                       4,628
                                                                                                              Food and agriculture                            83
                                             4,329                                                                                                 42
         E-commerce                           4,995
                                                                                                                             Real estate                  71
                                                                                                                                                     53
                                            3,945
          Technology                                                                                                                                     69
                                            3,765                                                                           Life sciences               60
                                       2,527                                                                                                            63
         Life sciences               1,725                                                        Retail and consumer products                  36

                                    1,286                                                               Media and entertainment                         60
              Logistics            906
                                                                                                                                                   41

                                                                                                                        Infrastructure               51
                                   1,054                                                                                                      25
 Industrial products                1,587
                                                                                                                              Education            40
                                                                                                                                                   39
                                   1,009
Retail and consumer                  1,770                                                                                                      36
                                                                                                                                Logistics      32
                                       2,197
                 Others                  3,141                                                                                    Others                          95
                                                                                                                                                             77

                                                                                       2019                 2018

  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
  Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

  Page 14       23 January 2020              EY analysis of VCCEdge data
Top PE/VC investments

Top PE/VC investments excluding infrastructure and real estate in 2019
                 Company/Project                                     Investors                   Sector               Stage     US$m    Stake (%)
One 97 Communications Limited (Paytm)                     Alibaba Group, Softbank        Financial services    Growth capital   1,000      NA
SBI Life Insurance Company Limited                        Carlyle, CPPIB*                Financial services    PIPE             817        11
Oravel Stays Private Limited (OYO)                        SoftBank                       E-commerce            Early stage      810        NA

CitiusTech Healthcare Technology Private Limited          Baring PE Asia                 Technology            Buyout           800        80

Bharti Airtel Limited                                     GIC                            Telecommunications    PIPE             726        NA
                                                          GGV Capital, Altimeter Capital,
Hiveloop Technology Private Limited                       Hillhouse Capital, Lightspeed   E-commerce           Early stage      585        NA
                                                          and others

Essel Propack Limited                                     Blackstone                     Industrial products   Buyout           540        75

Kyowa Pharmaceutical Industry Co. Limited                 Unison Capital Partners        Pharmaceuticals       Buyout           525       100

SBI General Insurance Co. Limited                         PremjiInvest, Warburg Pincus   Financial services    Growth capital   433        26

Delhivery Private Limited                                 SoftBank, Carlyle and others   Financial services    Growth capital   415        38

BrainBees Solutions Private Limited (First Cry)           SoftBank                       E-commerce            Growth capital   397        48

NIIT Technologies Limited                                 Baring PE Asia                 Technology            PIPE             381        30

AGS Health Private Limited                                Baring PE Asia                 Technology            Buyout           339       >50

Bajaj Finance Limited                                     GIC                            Financial services    PIPE             339        1

Lenskart Solutions Private Limited                        SoftBank and others            E-commerce            Growth capital   275        NA

*CPPIB: Canada Pension Plan Investment Board

Page 15      23 January 2020          EY analysis of VCCEdge data
Top PE/VC investments

Top infrastructure and real estate investments in 2019
                   Company/Project                                          Investors                           Sector          Stage      US$m    Stake (%)

GVK Airport Holdings Limited                                     ADIA, PSP, NIIF*                     Infrastructure      Growth capital   1,076      49

Greenko Energy Holdings                                          GIC, ADIA*                           Infrastructure      Growth capital   887        NA

Nine TOT projects of NHAI                                        Cube Highways                        Infrastructure      Buyout           716       100

GMR Airports Limited                                             GIC, SSG Capital                     Infrastructure      Growth capital   651        25

IRB Infrastructure Developers Limited, Road Platform             GIC                                  Infrastructure      Growth capital   631        NA

Commercial properties of Indiabulls Real Estate                  Blackstone                           Real estate         Buyout           624        50

Four hotels of Hotel Leela Venture Limited                       Brookfield                           Real estate         Buyout           572       100

Two existing malls and an upcoming retail development            Virtuous Retail, a APG
                                                                                                      Real estate         Buyout           550        NA
project                                                          Management - Xander JV

Essel Infraprojects Ltd (three road assets)                      CDPQ*                                Infrastructure      Buyout           500       100

Adani Electricity Mumbai Limited                                 Qatar Investment Authority           Infrastructure      Growth capital   450        25

*ADIA: Abu Dhabi Investment Authority, PSP: Public Sector Pension Investment Board, CDPQ: Caisse de dépôt et placement du Québec

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 16       23 January 2020              EY analysis of VCCEdge data
Top PE/VC investments

Top InvIT investment deals in 2019
                      Company/Project                                            Investors                    Stage   US$m    Stake (%)

Reliance Jio Infocomm Limited, Tower Arm                            Brookfield                       Buyout           3,660     >50

RIL's East West Pipeline                                            Brookfield                       Buyout           1,888      90

IRB Infrastructure Developers Limited, Road Platform InvIT          GIC                              Growth capital   631        NA

India Grid Trust                                                    GIC, KKR                         Buyout           400        57

                                                                    Asia Infrastructure Investment
Oriental Structure’s Infra Investment Trust                         Bank(AIIB), DEG, International   Growth capital   331        NA
                                                                    Finance Corporation(IFC) & HEG

L&T IndInfravit Trust -Sadbhav Infrastructure Project Limited       CPPIB*                           Growth capital   200        NA

Reliance Jio Infocomm Limited, Tower Arm                            Brookfield                       Buyout           3,660     >50

RIL's East West Pipeline                                            Brookfield                       Buyout           1,888      90

IRB Infrastructure Developers Limited, Road Platform InvIT          GIC                              Growth capital   631        NA

*CPPIB: Canada Pension Plan Investment Board

InvIT: Infrastructure Investment Trusts

Page 17      23 January 2020          EY analysis of VCCEdge data
2019 exits: analysis

                            Total exits (US$b)                                                                                             # of deals

                     2019                              11.5                                                                       2019                              156

                     2018                                                        27.0                                             2018                                                          177

                                     Exit type US$b                                                                                        Exit type #
            Open market                                                       4.6                                                                                                          49
                                                 1.7                                                                      Open market
                                                                                                                                                                                                56
              Secondary                                     2.5                                                                                                             33
                                                                                    5.0                                     Secondary
                                                                                                                                                                                      42
                Strategic                                 2.3                                                                                                                                   55
                                                                                                                             Strategic
                                                                                                                                                                                           50
                                                                         16.1
                 Buyback                            1.9                                                                                                 11
                                          1.1                                                                                 Buyback
                                                                                                                                                             16
                      IPO         0.2                                                                                                              8
                                        0.9                                                                                        IPO
                                                                                                                                                         13

                   Top sectors US$b
                                                                                                                                   Top sectors #
       Financial services                                    2.9
                                              1.5                                                                     Financial services                                     24
                                                      2.1            16.4                                                                                                                  34
             E-commerce                                                                                                                                                     23
                                                                                                                          Life sciences                              17
              Technology                        1.7
                                                            2.7                                                             Technology                                 19
                                                 1.7                                                                                                                             25
               Healthcare                       1.6                                                                                                                 15
                                                                                                                            Real estate                        12
              Real estate               0.9
                                      0.7                                                                                  E-commerce                        10
                                    0.4                                                                                                                      10
   Food and agriculture             0.4                                                                                                                      10
                                                                                                                   Retail and consumer                        11
                   Others                           2.0
                                                                   4.0                                                          Others                               16
                                                                                                                                                                    15
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 18       23 January 2020              EY analysis of VCCEdge data
Top exits

Top exits in 2019
          Company/Project                    Sector                    Sellers                       Buyer                 Exit type   US$m    Stake (%)

Oravel Stays Private Limited (OYO)    E-commerce             Lightspeed, Sequoia          Ritesh Agarwal                Buyback        1,500     23.7

ICICI Lombard General Insurance
                                      Financial services     Fairfax                      NA                            Open market    732        10
Company Limited
Genpact Limited                       Technology             Bain Capital, GIC            NA                            Open market    625        15

SBI Life Insurance                    Financial services     Carlyle                      NA                            Open market    393        3

CitiusTech Healthcare Technology
                                      Healthcare             General Atlantic             Baring PE Asia                Secondary      389        32
Private Limited
ICICI Lombard General Insurance
                                      Financial services     Fairfax                      NA                            Open market    362        5
Company Limited

Genpact Limited                       Technology             Bain Capital, GIC            NA                            Open market    324        5

Cancer Treatment Services Private
                                      Healthcare             TPG                          Varian Medical Systems Inc.   Strategic      283        NA
Limited

                                                             International Finance
Lenskart Solutions Private Limited    E-commerce             Corporation (IFC), TPG and   Softbank                      Secondary      275        NA
                                                             PremjiInvest
Housing Development Finance
                                      Financial services     KKR                          NA                            Open market    270        1
Corporation Limited
2.5 million sq ft IT SEZ property
                                      Real estate            GIC, Tishman Speyer          Allianz-Shapoorji JV          Strategic      250       100
“Waverock”

Page 19     23 January 2020          EY analysis of VCCEdge data
Fund raise

Top fund raise in 2019
    Status                                         Fund                        US$m                                  Strategy
                   Special Window for Affordable and Mid-Income Housing Fund
     Raised                                                                    1,465   Mid-income housing stalled projects
                   (SWAMIH) Investment Fund I

     Raised        Edelweiss Group’s alternative investment arm                1,295   Stressed assets

     Raised        Kotak Special Situations Fund                               1000    Non-performing assets

     Raised        ChrysCapital                                                850     Sector agnostic

     Raised        India Resurgence Fund                                       750     Structured debt

     Raised        Multiples Fund III                                          560     Financial services, consumer, healthcare and IT services

     Raised        Accel                                                       550     Early stage

     Raised        B Capital                                                   406     Sector agnostic

     Raised        Nexus Venture Partners                                      354     Early stage
     Raised
                   A91 Partners                                                350     Consumer, healthcare, financial services and technology

Page 20       23 January 2020           EY analysis of VCCEdge data
What will you
   invest in as
   investing changes?
   Quarterly trend analysis – 4Q2019

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

Investments

►    On a quarterly basis, investments in 4Q19 increased by 32% in terms of value compared to 4Q18 but declined 32% compared to 3Q19
     (US$10.9 billion in 4Q19 vs. US$8.3 billion in 4Q18 and US$16.1 billion in 3Q19). 3Q19 was the best quarterly performance ever for
     PE/VC investments. In terms of volume, deals increased by 31% compared to 4Q18 and were at par compared to 3Q19 (266 deals in
     4Q19 vs. 203 deals in 4Q18 and 267 deals in 3Q19). All the quarters of 2019 have recorded a strong growth in deal activity compared
     to the corresponding quarters in 2018.

►    The growth in PE/VC investments in 4Q19 is mainly due to increase in investments in the infrastructure and real estate sectors that
     accounted for 35% of total investments compared to 20% in 4Q18. At US$3.9 billion, investments in infrastructure and real estate
     increased by 131%.

►    From a sector point of view, in 4Q19, infrastructure sector was at the top with US$3.1 billion invested across 13 deals, 14 times the
     value recorded in 4Q18. Financial services sector was next in line with US$3 billion invested across 44 deals in 4Q19, which was three
     times the value recorded in 4Q18, followed by e-commerce with US$890 million invested across 47 deals.

►    In terms of deal type, growth capital recorded highest value of PE/VC investments in 4Q19 of US$4.7 billion (US$3.3 billion in 4Q18)
     followed by buyouts that recorded US$2.5 billion in investments (US$1.9 billion in 4Q18).

►    Large deals (value greater than US$100 million) continue to drive the growth of PE/VC investments. 4Q19 recorded 26 large deals
     aggregating to US$7.6 billion (compared to 18 large deals aggregating to US$5.9 billion in 4Q18 and 37 large deals worth US$12.8
     billion in 3Q19).

►    Abu Dhabi Investment Authority (ADIA), Public Sector Pension Investment Board (PSP) and National Investment and Infrastructure
     Fund’s (NIIF) US$1.1 billion investment in GVK Airport Holdings Limited followed by Softbank and Alibaba’s US$1 billion investment in
     Paytm were the largest deals in 4Q19.

Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 22       23 January 2020            EY analysis of VCCEdge data
Key trends: quarterly

Exits

►    On a year-on-year (y-o-y) basis, exits increased by 37% in terms of value in 4Q19 (US$3.3 billion vs. US$2.4 billion in 4Q18) and 28% in
     volume (41 deals vs. 32 deals in 4Q18). Compared to 3Q19 (US$3.7 billion across 37 deals), exits declined by 12% in terms of value and
     10% in terms of volume.

►    Exits via open market were the highest in 4Q19 at US$2.2 billion, accounting for 66% of exits by value followed by exits via secondary
     and strategic sales at US$619 million and US$468 million, respectively.

►    From a sector perspective, financial services (US$1.4 billion across 10 deals) recorded the highest value of exits in 4Q19 followed by
     technology (US$642 million across three deals) and e-commerce (US$425 million across four deals).

Fund raise

►    4Q19 saw US$3.8 billion in fund raise, 54% higher compared to 4Q18. The largest fund raise in 4Q19 saw Government of India sponsor a
     US$1.5 billion fund for providing last-mile funding to enable completion of construction of stalled housing projects. New fund raise plans
     announced in 4Q19 stood at US$5.5 billion compared to US$4.9 billion in 4Q18.

    Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 23       23 January 2020            EY analysis of VCCEdge data
PE/VC quarterly headline trends: investments

           US$m                                                               Total PE/VC investments                                                                                    #
                                                                                                                                                 269             267            266          300
                                                                                                                                     235
 15,000                                                                                   194                             203                                                                250
                                                                            182                          190
                                165           138            163                                                                                                                             200
 10,000           129
                                                                                                                                                                                             150
                                                                                                                                                                                             100
  5,000
                                                                                                                                                                                             50
                4,179          6,096         8,693          7,205         8,307         11,146          9,702         8,261         11,746      9,304           16,052         10,917
       -                                                                                                                                                                                     -
               1Q2017        2Q2017         3Q2017        4Q2017         1Q2018        2Q2018         3Q2018         4Q2018         1Q2019      2Q2019          3Q2019         4Q2019

                                                                                   Value (US$m)             # of deals

US$m       US$m
                                                             PE/VC investments split across asset classes
 15,000
                                                                                                                                                                       5,258
 12,000                                                                                     1,695
                                                 846                                                        895                         3,507                          2,511          3,090
   9,000                                                                     1,659           840            863             218
                                                               523                                                         1,450        1,490           2,657                          765
                                 617           2,242
   6,000                                                      1,440          1,474                                                                      1,378
                  1,010         1,053                                                       8,610          7,943                                                       8,283          7,063
   3,000                253 4,427              5,606          5,242                                                        6,593        6,749           5,268
                                                                             5,174
                  2,915
       -
               1Q2017         2Q2017         3Q2017         4Q2017          1Q2018         2Q2018         3Q2018           4Q2018      1Q2019       2Q2019         3Q2019          4Q2019

                                          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
Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 24       23 January 2020              EY analysis of VCCEdge data
PE/VC quarterly headline trends: exits

               US$m
               US$m                                                            Total PE/VC exits                                                                                           #
  7,000                           70                                                                                                                                                           80
                                               65             64
  6,000               61                                                                                                                                                                       70
                                                                             52             52                                                                                                 60
  5,000                                                                                                                                                43
                                                                                                            41                                                                   41            50
  4,000                                                                                                                               36                            36
                                                                                                                           32                                                                  40
  3,000
                                                                                                                                                                                               30
  2,000                                                                                                                                                                                        20
  1,000                                                                                                                                                                                        10
                  2,033          2,681       4,550          3,789          1,857         4,755         18,016             2,420     1,192          3,035          3,945        3,313
       -                                                                                                                                                                                       -
                 1Q2017      2Q2017         3Q2017        4Q2017          1Q2018        2Q2018         3Q2018         4Q2018        1Q2019        2Q2019          3Q2019       4Q2019

                                                                                   Value (US$m)              # of exits

US$m           US$m                                             PE/VC exits split across asset classes
                                                                                                        9
   7,000                                                                                                             13
   6,000
   5,000                                         327
                                                                                              844                                                                        284
   4,000                                                276    161                                    82                                                                               7
                                                                       236                                                                                  104
   3,000                           111
                                    -                                                                                        354                                                      348
                      56                                                                                                                         201
   2,000                                                                      234                                                          133
                           184
   1,000                                                                              262                                                         92
                  1,793           2,570        3,947          3,392          1,361          3,829           17,994          2,066          967          2,730        3,661         2,958
           -
                  1Q2017         2Q2017       3Q2017          4Q2017         1Q2018        2Q2018           3Q2018         4Q2018     1Q2019           2Q2019       3Q2019        4Q2019

                                                  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
Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

 Page 25         23 January 2020            EY analysis of VCCEdge data
PE/VC quarterly headline trends: fund raise

          US$m
          US$m
                                                                                         Fund raise                                                               #
 3,000                                                                                               17                                                               20
                                                                                                                                         15                15
                                                                                                                                  14
                                             13                                                                                                                       15
                                                                                       12                                                         12
 2,000          11                                         11            11                                        11
                                9
                                                                                                                                                                      10
 1,000
                                                                                                                                                                      5
               1,287          719          2,234         1,533         1,304         1,701         2,607         2,479        2,794    2,749    2,335    3,809
      -                                                                                                                                                               -
             1Q2017        2Q2017        3Q2017        4Q2017          1Q2018       2Q2018        3Q2018        4Q2018      1Q2019     2Q2019   3Q2019   4Q2019

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

Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 26       23 January 2020            EY analysis of VCCEdge data
PE/VC investments (excluding infrastructure and real estate)
4Q2019
                           Total investments (US$m)                                                                                 # of deals

               4Q2019                                      7,063                                                          3Q2019                                     240

               4Q2018                                    6,593                                                            3Q2018                             185

                           Deal type US$m                                                                                           Deal type #

      Credit investment            470                                                                         Credit investment          17
                                151                                                                                                       17

                 Buyout                    936                                                                             Buyout       5
                                           952                                                                                           10

                   PIPE*                      1,147                                                                         PIPE*         17
                                        635                                                                                              11
                                                    1,634                                                   Start-up/Early stage                                     156
   Start-up/Early stage                                                                                                                                  111
                                                      1,813
                                                                    2,875                                      Expansion/Growth                    45
     Expansion/Growth                                                                                                                            36
                                                                      3,041

                           Deal size US$m                                                                                           Deal size #

            >US$100m                                                4,288                                               >US$100m           17
                                                                     4,482                                                               12
                                    714                                                                      US$50m-US$100m             10
   US$50m-US$100m                  609                                                                                                  7
                                         1,229                                                                US$20m-US$50m                        34
     US$20m-US$50m                      973                                                                                                      29
                                 458                                                                          US$10m-US$20m                       33
     US$10m-US$20m              246                                                                                                       17
                                  374
PE/VC investments: infrastructure
4Q2019
                           Total investments (US$m)                                                                                    # of deals

                 4Q2019                                                     3,090                                            4Q2019                                      13

                 4Q2018             218                                                                                      4Q2018                      5

                           Deal type US$m                                                                                              Deal type #

      Credit investment                                                                                           Credit investment            1

                  Buyout                                          1,215                                                       Buyout                             4

                   PIPE*       -                                                                                               PIPE*      -
                               -                                                                                                          -
                                     140                                                                       Start-up/Early stage                  2
   Start-up/Early stage                                                                                                                              2
                               4
                                                                             1,630                               Expansion/Growth                                    6
     Expansion/Growth                                                                                                                                        3
                                        214

                           Deal size US$m                                                                                              Deal size #
                                                                        2,935                                              >US$100m                                      7
            >US$100m                                                                                                                           1
                                    185
                                   75                                                                          US$50m-US$100m                  1
   US$50m-US$100m
                               36                                                                                US$20m-US$50m                 1
     US$20m-US$50m                                                                                                                             1
                               21
                                43                                                                               US$10m-US$20m                               3
     US$10m-US$20m
                              1
PE/VC investments: real estate
 4Q2019
                             Total investments (US$m)                                                                               # of deals

                 4Q2019                                765                                                               4Q2019                                      13

                 4Q2018                                                   1,450                                          4Q2018                                      13

                             Deal type US$m                                                                                         Deal type #

     Credit investment              76                                                                         Credit investment                     2
                                                391                                                                                                              5
                   Buyout                      347                                                                        Buyout                         3
                                                                      995                                                                                3
                     PIPE*               174                                                                               PIPE*                     2

  Start-up/Early stage            2                                                                          Start-up/Early stage                1
                                  21                                                                                                                 2
    Expansion/Growth                    166                                                                   Expansion/Growth                                   5
                                   43                                                                                                                    3

                             Deal size US$m                                                                                         Deal size #
                                               363                                                                  >US$100m                         2
            >US$100m                                                             1,277                                                                           5
                                               326                                                           US$50m-US$100m                                  4
 US$50m-US$100m                     81                                                                                                           1
                                                                                                             US$20m-US$50m                       1
   US$20m-US$50m                   35                                                                                                            1
                                   43
                                                                                                             US$10m-US$20m                           2
   US$10m-US$20m                  24                                                                                                                     3
                                   43
4Q2019 PE/VC investments: sector-wise

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

                                                                           3,090                                                                                                       47
       Infrastructure                                                                                                            E-commerce                            25
                                 218
                                                                                                                            Financial services                                     44
                                                                          2,990                                                                                              35
   Financial services
                                            968                                                                                                                             31
                                                                                                                                  Technology                           25
                                                 1,264
          Life sciences                                                                                                                                            21
                                 161                                                                                            Food and agri        6
                                           890                                                                                   Life sciences                 20
          E-commerce                                                                                                                                          17
                                                   1,403
                                                                                                                          Retail and consumer                     18
                                         765                                                                                                             12
           Real estate
                                                   1,450                                                            Media and entertainment                  14
                                                                                                                                                             14
                                      640                                                                                                                    13
           Technology                                                                                                             Real estate
                                   332                                                                                                                       13

                                                                                                                               Infrastructure                13
                                   336                                                                                                               5
Retail and consumer
                                    491
                                                                                                                                     Logistics           11
                                                                                                                                                         11
                                            943
                Others                                                                                                                                                       34
                                                                             3,237                                                     Others                                     40

                                                                                    4Q2019               4Q2018

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

Note: The data includes deals that are announced but are awaiting closure like ADIA, PSP and NIIF’s investment in GVK

Page 30       23 January 2020              EY analysis of VCCEdge data
Top PE/VC investments

Top PE/VC investments excluding infrastructure and real estate in 4Q2019
                Company/Project                                    Investors                  Sector               Stage        US$m    Stake (%)
One 97 Communications Limited (Paytm)                    Alibaba Group and Softbank   Financial services    Growth capital      1,000      NA

Kyowa Pharmaceutical Industry Co. Limited                Unison Capital               Pharmaceuticals       Buyout              525       100
                                                         PremjiInvest and Warburg
SBI General Insurance Co. Limited                                                     Financial services    Growth capital      433        26
                                                         Pincus

Bajaj Finance Limited                                    GIC                          Financial services    PIPE                339        1

Lenskart Solutions Private Limited                       SoftBank and others          E-commerce            Growth capital      275        NA

Bharat Serums and Vaccines Limited                       Advent International         Pharmaceuticals       Buyout              250        60

Piramal Enterprises Limited                              CDPQ*                        Financial services    PIPE                247        2

                                                         Temasek, Bessemer Venture
91Streets Media Technologies Private Limited             Partners, Orios Venture
                                                                                      Healthcare            Early stage         226        NA
(Pharmeasy)                                              Partners, Eight Roads and
                                                         others
                                                                                      Retail and consumer
Ryka Commercial Ventures                                 Blackstone                                         Credit investment   160        NA
                                                                                      products
ETechAces Marketing and Consulting Private Limited
                                                         Tencent                      Financial services    Growth capital      150        10
(Policy Bazaar)

*CDPQ: Caisse de dépôt et placement du Québec

Page 31     23 January 2020          EY analysis of VCCEdge data
Top PE/VC investments

Top infrastructure and real estate investments in 4Q2019
                   Company/Project                                          Investors                           Sector          Stage      US$m    Stake (%)
GVK Airport Holdings Limited                                     ADIA, PSP, NIIF                      Infrastructure      Growth capital   1,076      49
Nine TOT projects of National Highway Authority of
                                                                 Cube Highways                        Infrastructure      Buyout           716       100
India (NHAI)
                                                                 The Qatar Investment
Adani Electricity Mumbai Limited                                                                      Infrastructure      Growth capital   450        25
                                                                 Authority
7 road assets (Expressways in Tamil Nadu, Nirmal BOT,
Telangana, Dewas Bhopal Corridor, Bangalore Elevated
Tollway, Godhra Expressway, Jodhpur Pali Expressway              CDPQ                                 Infrastructure      Buyout           339       >50
and Shillong Expressway)

TSI Business Parks Hyderabad Private Limited,
                                                                 SPREF II                             Real estate         Buyout           250       100
WaveRock Hyderabad Office Complex

EPC Constructions India Limited                                  Royale Partners                      Infrastructure      Buyout           125       100

                                                                 International Finance
Hero Future Energies Private Limited                                                                  Infrastructure      Early stage      125        NA
                                                                 Corporation (IFC)

Top InvIT investment deals in 4Q2019
                    Company/Project                                          Investors                          Sector          Stage      US$m    Stake (%)
IRB Infrastructure Developers Limited,
                                                                  GIC                                  Infrastructure     Growth capital    631       NA
Road Platform InvIT

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 32       23 January 2020              EY analysis of VCCEdge data
4Q2019 exits: analysis

                             Total exits (US$m)                                                                                           # of deals

                 4Q2019                                                      3,313                                            4Q2019                                               41

                 4Q2018                                          2,420                                                        4Q2018                                     32

                             Exit type US$m                                                                                               Exit type #

            Open market                              2,188                                                                Open market                                                   17
                                     356                                                                                                                             8

               Secondary              619                                                                                  Secondary                             7
                                       790                                                                                                                           8

                Strategic            468                                                                                     Strategic                                         13
                                           1,020                                                                                                                              12

                 Buyback        37                                                                                            Buyback              3
                                71                                                                                                                 3

                       IPO      -                                                                                                  IPO         1
                                    183                                                                                                        1

                             Top sectors US$m                                                                                      Top sectors #

      Financial services                               1,390                                                              E-commerce                         47
                                          549                                                                                                          25
             Technology                     642                                                                                                             44
                                                   1,019                                                             Financial services               35
            E-commerce                425
                                                                                                                           Technology                31
                                       348                                                                                                         25
              Real estate             354
                                                                                                                          Life sciences           20
   Retail and consumer              186                                                                                                         17
                                109                                                                    Retail and consumer products              18
            Life sciences                                                                                                                      12
                                100
                   Others        213                                                                                           Others                                          105
                                    398                                                                                                                                  89
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 33       23 January 2020                EY analysis of VCCEdge data
Top exits

Top exits in 4Q2019
          Company/Project                    Sector                    Sellers                      Buyer                 Exit type   US$m   Stake (%)
ICICI Lombard General Insurance
                                      Financial services     Fairfax                      NA                           Open market    732       10
Company Limited

Genpact Limited                       Technology             Bain Capital, GIC            NA                           Open market    625       15

SBI Life Insurance Company Limited    Financial services     Carlyle                      NA                           Open market    393       3
                                                             International Finance
                                                             Corporation (IFC),
Lenskart Solutions Private Limited    E-commerce                                          SoftBank and Others          Secondary      275       NA
                                                             PremjiInvest, TPG and
                                                             others
2.5 million sq ft IT SEZ property
                                      Real estate            GIC, Tishman Speyer          Allianz-Shapoorji JV         Strategic      250      100
“Waverock”
Crompton Greaves Consumer             Retail and consumer Temasek, Advent
                                                                                          NA                           Open market    178       8
Electricals Limited                   products            International

PolicyBazaar                          E-commerce             Tiger Global                 Tencent                      Secondary      150       10

                                                                                          Credit Access Grameen
Madura Micro Finance Limited          Financial services     Elevar Advisors and others                                Strategic      123       NA
                                                                                          Limited

Tata Realty and Infrastructure                                                            Xander Group’s retail arm,
                                      Real estate            Tata Realty                                               Secondary       97      100
Limited’s (TRIL) retail malls                                                             Virtuous Retail

                                      Media and              True North, Zodius Capital
Born Group Inc.                                                                           Tech Mahindra Limited        Strategic       95       NA
                                      entertainment          Advisors

Page 34     23 January 2020          EY analysis of VCCEdge data
Fund raise

Top fund raise in 4Q2019
    Status                                         Fund                        US$m                                  Strategy
                   Special Window for Affordable and Mid-Income Housing Fund
     Raised                                                                    1,465   Mid-income housing stalled projects
                   (SWAMIH) Investment Fund I

     Raised        Multiples Fund III                                          560     Financial services, consumer, healthcare and IT services

     Raised        Accel                                                       550     Early stage

     Raised        3one4 Capital Continuum-I fund                              350     Early stage

     Raised        Piramal Group, IIFL Wealth Management                       278     Realty projects

     Raised        Xander Investment Management                                250     Industrial realty (logistics and e-commerce)

Page 35       23 January 2020           EY analysis of VCCEdge data
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.

    Monthly trend analysis – December 2019

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

Investments

►   PE/VC investments in December 2019 (US$2.4 billion) were 25% lower compared to December 2018 (US$3.2 billion) and 55% lower
    compared to November 2019 (US$5.3 billion). The decline was mainly due to lower value of pure play PE/VC investments (US$1.2 billion
    in December 2019 compared to US$2.8 billion in December 2018 and US$4.1 billion in November 2019). Investments in infrastructure
    and real estate sectors in December 2019 were three times the value recorded in December 2018 and at par with the value recorded in
    November 2018.

►   December recorded six large deals (value greater than US$100 million) worth US$1.2 billion compared to six large deals worth US$2.3
    billion in December 2018 and 15 large deals worth US$4.2 billion in November 2019. The largest deals announced in December 2019
    include the Qatar Investment Authority’s US$450 million investment in Adani Electricity Mumbai Limited followed by Softbank’s US$275
    million investment in Lenskart Solutions Private Limited.

►   From a sector point of view, real estate (US$625 million) was the top sector in December 2019 followed by infrastructure (US$556
    million) and e-commerce (US$403 million).

►   In deal type, growth deals recorded the highest value of investments in December 2019 at US$1.1 billion across 16 deals, compared to
    15 deals worth US$1.1 billion in December 2018 followed by start-up investments worth US$406 million across 47 deals (US$1.3 billion
    across 44 deals in December 2018) and buyouts at US$347 million across two deals (US$556 million across five deals in December
    2018).

Page 37   23 January 2020     EY analysis of VCCEdge data
Key trends: monthly

Exits

►   December 2019 recorded eight exits worth US$864 million, 2.3 times the value of exits recorded in December 2018 (US$381 million)
    and 42% lower than November 2019 (US$1.5 billion).

►   The largest exit in December 2019 saw a group of investors including TPG, International Finance Corporation (IFC) and others sell their
    stake in Lenskart Solutions Private Limited to Softbank for US$275 million.

►   In December 2019, exits via secondary sale were highest at US$424 million across three deals, accounting for 49% of total exits by
    value.

►   Real estate sector (US$348 million across two deals) was the top sector in December 2019 followed by e-commerce with one deal worth
    US$275 million.

Fund raise

►   December 2019 recorded total fund raises of US$3.2 billion compared to US$1.4 billion raised in December 2018 with the largest fund
    raise being a Government of India sponsored US$1.5 billion fund for providing last-mile funding to enable completion of construction of
    stalled housing projects.

Page 38   23 January 2020      EY analysis of VCCEdge data
PE/VC monthly headline trends: investments

          US$m                                                                     Total PE/VC investments                                                                               #
 9,000                                                                100                                      101                                                 100                       120
                                                                                                                                          93          89
                              87                         87                          82           87                                                                                         100
                72                                                                                                           73                                                 77
 6,000                                     61                                                                                                                                                80
                                                                                                                                                                                             60
 3,000                                                                                                                                                                                       40
                                                                                                                                                                                             20
              3,187         1,862        2,814         7,070         3,324         2,856        3,124         8,378        4,267        3,408       3,242         5,288       2,387
     -                                                                                                                                                                                       0
              Dec-18       Jan-19       Feb-19         Mar-19       Apr-19         May-19      Jun-19         Jul-19       Aug-19       Sep-19      Oct-19        Nov-19      Dec-19

                                                                                    Value (US$m)             # of deals

          US$m                                                  PE/VC investments split across asset classes
     8,000

     6,000                                                                                                        4,258
                                                            2,651
                                                                                                                                                                      1,120
     4,000                                                          995     10                                                                                                26
                      21                                                                                           297            803
                                                                                                                                             98           1,415
                     363                                                               1,076                                      764                                              556
                                                                            259                      1,323                                  1,450
                                                       856                                                                                                            4,142
     2,000                              131     364       3,424                                                   3,723                                    114
                   2,804                                                  3,055         687           682                      2,700                                                625
                                1,731         1,593                                                                                         1,859         1,714
                                                                                       1,094         1,119                                                                         1,207
          -
                  Dec-18       Jan-19         Feb-19       Mar-19         Apr-19      May-19        Jun-19        Jul-19      Aug-19       Sep-19      Oct-19        Nov-19        Dec-19

                                           PE/VC investments (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
Investment data for previous months have been restated to account for some deals that didn’t conclude post announcement and exclusion of a few deals where the target’s primary
region of operation was outside India

Page 39       23 January 2020              EY analysis of VCCEdge data
PE/VC monthly headline trends: exits

           US$m                                                                       Total PE/VC exits                                                                           #
                                                                                                                                          17
  3,000                                                                 16                                                                                                            18
                                                                                                   15
                                                                                                                                                    14                                16
                               13                          13
                                                                                      11                                    11                                                        14
  2,000                                      10                                                                                                                15                     12
                                                                                                                  9
                  8                                                                                                                                                        8          10
                                                                                                                                                                                      8
  1,000                                                                                                                                                                               6
                                                                                                                                                                                      4
                                            472                        1,263         753          1,019          616        680       2,649         960       1,355       864         2
                  381          331                        389
       -                                                                                                                                                                              0
               Dec-18        Jan-19       Feb-19        Mar-19        Apr-19       May-19        Jun-19        Jul-19     Aug-19     Sep-19        Oct-19     Nov-19     Dec-19

                                                                                   Value (US$m)             # of exits

           US$m                                                       PE/VC exits - split across asset classes
  3,000
                                                                                                                                            29

  2,000

                                                                                                   104                                    2,620           7
  1,000
                                                                                                                              187
                                                                                                                   68                                            1,355         348
                                             92            133          1,062                        916                                              953
                                                            -                          753                         548                                                         516
                  381          331           381           256                                                                493
       -
               Dec-18        Jan-19        Feb-19        Mar-19        Apr-19        May-19        Jun-19        Jul-19     Aug-19        Sep-19     Oct-19     Nov-19     Dec-19

                                                      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 40       23 January 2020              EY analysis of VCCEdge data
PE/VC monthly headline trends: fund raise

          US$m                                                           Fund raise                                                                   #
  4,000                                                                                                                                                   18
                                                                                                                                                          16
  3,000                                                                                                                                                   14
                          10                                                                                                                              12
                                                                                                                                                          10
  2,000                                                                                                                                        7
                                                                     6                                                                                    8
                                                                                  5                                          5
                                                              4                             4           4           4                                     6
  1,000          3                3                                                                                                   3
                                                                                                                                                          4
                                              1
             1,440      2,469    285          40          682      1,096          971      545        1,136        654               172     3,233        2
                                                                                                                            403
      -                                                                                                                                                   0
             Dec-18    Jan-19   Feb-19     Mar-19       Apr-19    May-19      Jun-19      Jul-19     Aug-19       Sep-19   Oct-19   Nov-19   Dec-19

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

Page 41     23 January 2020     EY analysis of VCCEdge data
December 2019 PE/VC investments: US$1,207 million over 68
deals (excluding infrastructure and real estate investments)
                           Top sectors by value US$m                                                    Top sectors by volume

                        E-commerce                                      402                               E-commerce                              13

                  Financial services                          274                                    Financial services                          12

                         Technology                  142                                                   Technology                      8

                            Logistics               120                                                    Healthcare                  5

                          Healthcare            97                                                           Logistics             4

                                Others                172                                                        Others                                        26

                          Deal value US$m (volume)                                                          Deal type US$m (volume)
                                         363 (11)
                                                           330 (5)                                                                                        579 (13)
                                                                              275 (2)
                                                                                                                                               406 (47)

   116 (32)           123 (8)
                                                                                         130 (5)
                                                                                                                          92 (3)

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

Note: Deal value was not disclosed in 10 out of 65 deals in December 2019
      PIPE: private investment in public equity

Page 42       23 January 2020             EY analysis of VCCEdge data
December 2019 infrastructure and real estate investments:
US$1,180 million over 9 deals
                                       By value US$m                                                                                By volume

                                   Real estate                             625                                               Real estate                            6

                                Infrastructure                556                                                          Infrastructure             3

                           Deal value US$m (volume)                                                                          Deal type US$m (volume)
                                                                               917 (4)                                                                                  549 (3)

                                                                                                                          347 (2)

                                                            256 (3 )                                                                        174 (2)
                                                                                                            110 (2)

      7 (2 )              NA                NA

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

PIPE: private investment in public equity
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 43        23 January 2020             EY analysis of VCCEdge data
Top PE/VC investments

Top PE/VC investments excluding infrastructure and real estate in December 2019
             Company/Project                                   PE Investors                      Sector              Stage        US$m   Stake (%)

Lenskart Solutions Private Limited                 Softbank and others                   E-commerce           Growth capital      275       NA

                                                   International Finance Corporation
Mahindra Finance                                                                         Financial services   Credit investment    75       NA
                                                   (IFC)

AU Small Finance Bank Limited                      Temasek                               Financial services   PIPE                 73       NA

                                                   Advent International, Hillhouse
Girnar Software Private Limited (Cardekho)                                               Technology           Growth capital       70       NA
                                                   Capital, Sequoia Capital and others

                                                   Eight Roads, Qualcomm Ventures,
Shadowfax Technologies Private Limited             NGP Advisors, International Finance   Logistics            Early stage          60       NA
                                                   Corporation(IFC) and others

Asian Institute of Gastroenterology Private
                                                   Quadria Capital                       HealthCare           Growth capital       52       14
Limited

Page 44     23 January 2020           EY analysis of VCCEdge data
Top infrastructure and real estate investments

Top infrastructure and real estate investments in December 2019
               Company/Project                                         PE Investors                             Sector          Stage      US$m   Stake (%)

Adani Electricity Mumbai Limited                          The Qatar Investment Authority               Infrastructure     Growth capital   450       25

TSI Business Parks Hyderabad Private Limited,
                                                          SPREF II                                     Real estate        Buyout           250      100
WaveRock Hyderabad Office Complex

Mariana Infrastructure Limited (commercial
                                                          Blackstone                                   Real estate        Growth capital   113       50
projects of Indiabulls Real Estate Ltd.)

Top InvITs in December 2019
               Company/Project                                         PE Investors                             Sector          Stage      US$m   Stake (%)
IRB Infrastructure Developers Limited,
                                                          GIC                                          Infrastructure     Growth capital   104       NA
Road Platform InvIT

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 45       23 January 2020              EY analysis of VCCEdge data
Exits: US$863 million across 8 deals in December 2019

                                                                      Exits in December 2019

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

                                                                                                                       424 (3)
                  Real estate                                              348 (2)

                 E-commerce                                      275 (1)
                                                                                                          250 (2)
          Retail and consumer
                                                  178 (1)                                                                           189 (2)
                products

                  Healthcare        52 (1)

                                                                                        0 (1)
                Food and agri   49 (2)
                                                                                        IPO     Buyback   Strategic   Secondary   Open market

Page 46      23 January 2020       EY analysis of VCCEdge data
Top exits

Top exits in December 2019
          Company/Project                    Sector                     Sellers                         Buyer                Exit type   US$m   Stake (%)

                                                             International Finance
                                                             Corporation (IFC),
Lenskart Solutions Private Limited    E-commerce                                              SoftBank and Others         Secondary      275       NA
                                                             PremjiInvest, TPG and
                                                             others

2.5 million sq ft IT SEZ property
                                      Real estate            GIC, Tishman Speyer              Allianz-Shapoorji JV        Strategic      250      100
“Waverock”

Crompton Greaves Consumer             Retail and             Temasek, Advent
                                                                                              NA                          Open market    178       8
Electricals Ltd.                      consumer products      International

Tata Realty and Infrastructure                                                                Xander Group’ retail arm,
                                      Real estate            Tata Realty Initiatives Fund I                               Secondary       97      100
Limited’s (TRIL) retail malls                                                                 Virtuous Retail

Page 47     23 January 2020          EY analysis of VCCEdge data
Fund raise

Top fund raises/announcements in December 2019
    Status                                         Fund                        US$m                                  Strategy

                   Special Window for Affordable and Mid-Income Housing Fund
     Raised                                                                    1,465   Mid-income housing stalled projects
                   (SWAMIH) Investment Fund I

     Raised        Multiples Fund III                                          560     Financial services, consumer, healthcare and IT services

     Raised        Accel                                                       550     Early stage

     Raised        3one4 Capital Continuum-I fund                              350     Early stage

     Raised        Piramal Group, IIFL Wealth Management                       278     Realty projects

Page 48       23 January 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
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►   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. EY was also the top PE advisor in the
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►   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
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Page 50    23 January 2020      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
                                                                                                        Fund assurance and management
 (Personal tax)
                                                                                                        (Fund and fund management company audit,
                                                                                                        portfolio valuation, controls and process
 Fund Raising
                                                                                                        design and review, tax and regulatory
 (Marketing collateral, fund structuring,
                                                                                                        compliance)
 audit of fund performance)

 Buy and sell side advisory                                              Funds
 (M&A, capital markets support, tax                                                                     Buyside support
 structuring, regulatory compliance, SPA                                                                (Due diligence – financial, tax, business and
 advisory, integrated sell side advisory –                           Transaction                        commercial, forensics and background, HR,
 building equity story, vendor due diligence                          Advisory                          IT and environmental, modeling and
 (VDD), structuring marketing)                                                                          valuations)
                                                                       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                 Assurance                                            assessment, MIS development, process
 mandates, exit structuring)                       (Statutory audit, tax compliance, risk management,   advisory, standard operating procedures, CFO
                                                   corporate governance advisory, internal audits and   services and compliance manager)
                                                   fraud reviews)

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

Page 51    23 January 2020        EY analysis of VCCEdge data
Contacts
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About IVCA
IVCA                                                   Contacts
About IVCA
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