PE / VC investments increase 6.5x to 7.5 billion dollars in April compared to the period of the previous year

Based on 15 large deals worth $ 6.1 billion, private equity and venture capital (PE / VC) investments totaled $ 7.5 billion out of 67 deals in April . This value was 6.5 times the $ 1.1 billion recorded in April 2020 and 37 cents higher compared to March 2021 ($ 5.5 billion).

PE / VC investments in April of last year were affected by the uncertainty related to Covid-19 which resulted in a significant drop in investment activity. However, the number of transactions was down 12 percent year-on-year and 36 percent from the previous month (67 transactions in April 2021 compared to 76 transactions in April 2020 and 105 transactions in March 2021), according to a report from the Private Indian equity. & Venture Capital Association and EY (IVCA-EY).

The sharp monthly drop in the number of transactions could be due to investors becoming cautious due to the second growing wave of Covid-19 infections in India, he said.

Vivek Soni, Partner and National Leader in Private Equity Services at EY, said: “2021 has seen four consecutive months of sequential increases in PE / VC investments from $ 1.6 billion in January to $ 7.5 billion. billion dollars in April 2021. On an annual basis, investment has increased more than six times due to the weak base effect, with investment in April 2020 having been severely hampered by the then growing uncertainty around the spread of Covid-19 ”.

Resumption of commercial activity

“While the resilient sectors of Covid such as pharma, healthcare, edtech, online media, SaaS, technology and IT / ITeS etc. continue to experience good traction in value and volume of PE / VC transactions, there has been a significant increase in the value and volume of investments in the e-commerce sector, ”he added.

The upturn in trading activity during the month under review was driven by large transactions. April 2021 recorded 15 large transactions (worth over $ 100 million) worth $ 6.1 billion, compared to three large transactions worth $ 475 million in April 2020 and 17 large transactions worth $ 4 billion in March 2021.

The largest deal in April 2021 saw a new Blackstone fund with ADIA, UC Investments and GIC announce the acquisition of a controlling stake in Mphasis for around $ 2.8 billion. The next big deal saw a group of investors including Qatar Investment Authority, Singapore GIC Pvt Ltd, Goldman Sachs, Naspers and others invest $ 800 million in Swiggy.

Top sectors

Technology was the top sector with $ 3.1 billion recorded in nine transactions, mostly due to the $ 2.8 billion Blackstone-Mphasis deals that were announced, followed by e-commerce with $ 1.5 billion. of investments in 13 deals, the highest monthly investment value in the sector over the past 31 months. The pandemic has accelerated the adoption of e-commerce, which has led to a significant increase in the ratings of many direct consumer companies, garnering considerable investor interest.

The financial services industry was next with $ 614 million invested in 12 deals and in media and entertainment with $ 515 million invested in two deals.

Exits

April 2021 recorded 13 releases worth $ 2.7 billion, nearly 23 times the value of releases in April 2020 ($ 117 million) and 25% more than the value recorded in March 2021 (2, $ 1 billion). Secondary outflows in April 2021 were the highest at $ 2.1 billion in three deals, including Blackstone’s $ 2 billion outflow of Mphasis.

Total fundraising in April 2021 was $ 569 million, compared to no fundraising in April 2020. The largest fundraising in April 2021 enabled Alteria Capital to raise $ 179 million during the first closing of its second risky debt fund.


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