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Private Equity/Venture Capital investment go up by 24.72 percent
By siliconindia
New Delhi: Private equity and Venture Capital investment go up by 24.72 percent from $453 million in January 2010 to $563 million in January 2011, according to the data released by VCCedge, PE/VC research firm.
Deals count almost remains the same at 35 deals against 34 deals in January 2010. But January 2011 witnessed majority of small or mid size deals falling under $25 million which increases the deal volume by 68.5 percent. Top five sectors that accounted for more than 89 percent of total private equity deal value during the month are Financial at $118 million who gets 6 deals, Information Technology at $95 million with 4 deals, Consumer Discretionary at $84 million gets maximum of 10 deals, Industrial at $65 million and Utilities at $ 39 million gets 4 deal each.
"2011 will see increased activity from the US and Europe as companies in these markets see improved business cycles. PE activity may increase in the near future especially given the volatility in the capital markets which may result in companies scouting for private equity rather than tap the equity markets PE exits will continue to be driven by the lifecycle of the investments and increased attention by global and Indian strategies," says Vikram Hosangady, Executive Director, Transaction Services, KPMG India.
According to VCCedge report, PE exits continued to witness momentum in terms of deal value, showing $605 million in total of 9 exit deals in January 2011. PE investors has given out stakes worth $522 million across 5 Mergers and Acquisitions deals and another $83 million across 4 open market transactions in January. IT sector, witnessed the maximum exit activity with investors taking back $295 million as returns across 4 deals. General Atlantic LLC's $921 million exit from Mumbai based Patni Computer Systems Ltd. Becomes the top exit of the month and accounted for nearly 49 percent of the total exit value. Financial with $147 million and Consumer Discretionary with $127.61 million contributed to exit value deals.
Macquarie- SBI Infrastructure Fund's investment of $130 million in Madhya Pradesh based MB Power Madhya Pradesh which is developing a 2,520 MW thermal power plant in multiple phases at Anuppur, Madhya Pradesh with an investment of $3 billion becomes the top investors in January 2011 followed by Warburg Pincus India's $50 million investment to form a real estate joint venture with Lemon Tree Hotels to develop affordable residential projects in India. $48 million investment made by Oak Investment Partners, Asia Pacific Capital, ICICI Bank and a US based firm in Hyderabad based Ybrant Digital is among the other big deals of the month.
