Private Equity investments down by 50% in Q3’16

Although Q3’16 recorded US $3.2 billion in investments across 125 deals, it is 50 per cent lower than the Q3’15 figures which touched an all time high of US $6.5 billion in investments across 224 deals 

Private Equity firms invested about US $3.2 billion across 125 deals during the quarter ended September 2016, according to early data from Venture Intelligence, a research service focused on private company financials, transactions and their valuations. The investment amount was 50 per cent lower than the all time high registered in Q3’15 (which witnessed US $6.5 billion across 224 transactions) and 5 per cent lower than the immediate previous quarter ($3.4 Billion across 135 transactions). The latest figures take the PE investments in the first nine months of 2016 to US $10.6 billion across 443 transactions – down 23 per cent compared to US $13.8 billion across 594 deals in the same period in 2015.

(Note: These figures include Venture Capital investments, but exclude PE investments in Real Estate).

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Top Investments This Quarter

The latest quarter witnessed 10 PE investments worth US $100 million or more to 17 such transactions in the same period last year and five during the immediate previous quarter, the Venture Intelligence analysis showed. The largest PE investment announced during Q3’16 was the US $300 million raised by Paytm from Taiwan’s Mediatek, China’s Alibaba and VC firm SAIF Partners. The next largest were Goldman Sachs’ US $250 million investment in Essel Highways followed by the US $175 million raised by messenger firm Hike from China’s Tencent, Taiwan’s Foxconn and US-based Tiger Global.

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Which Sectors Attracted Most Investments?

IT & ITES companies accounted for 36 per cent of the PE investment pie in Q3’16 attracting US $1.1 billion across 65 transactions. The value of IT & ITES investments in Q3’16 was down 68 per cent from the US $3.6 billion across 132 deals in the same period in 2015. However investments in BFSI have more than doubled following US $100M+ investments in India Infoline Finance, National Stock Exchange and Hero Fincorp.

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About Venture Intelligence

Venture Intelligence, a division of TSJ Media Pvt. Ltd., is the leading source of information on private company financials, transactions and their valuations in India. For more information, please visit http://www.ventureintelligence.com