November 2017 recorded the highest monthly value of exits ever with 25 exits worth $2.7 billion, according to EY's monthly PE deal tracker. It was mainly on account of one large open market exit that of Qatar Foundation Endowment selling 5 per cent stake in Bharti Airtel for US$1.5 billion. There were two PE backed IPO in November 2017 which saw Kedaara selling 13.6 per cent stake in Mahindra Logistics for US$65 million and Reliance Alternative Investment Fund selling 33 per cent stake in Khadim for US$68 million.
From a sector perspective, Telecom topped the charts in spite of one deal due to the US$1.5 billion exit by Qatar Foundation Endowment. Telecom was followed by financial services with four exits worth US$650 million.
The month recorded 217 per cent increase in value of investments, while in terms of volume it increased 37 per cent compared to same period last year. (US$2.9 billion across 56 deals in November 2017 versus US$0.9 billion across 41 deals in November 2016). On a month-on-month basis, there was an increase of 40 per cent in value while number of deals remained the same.
This increase was driven significantly by high number of large value deals. November 2017 recorded ten deals with value greater than US$100 million (highest number for any given month ever) aggregating US$2.3 billion. According to the report, 2017 is emerging as the best year ever for large value deals with 54 deals so far, aggregating US$18.2 billion. This is mainly due to increasing exposure of big bracket pension funds, sovereign wealth funds and global buyout funds in India who earlier preferred the LP route. This also reinforces the growing interest of the investor community to invest in the Indian PE market and their growing confidence to make larger bets.
From sector point of view, financial services topped the charts with US$993 million invested across nine deals. "2017 has been the best year for financial services which has recorded US$5.8 billion across 95 deals so far, more than double the previous high of US$2.5 billion across 72 deals recorded for the whole of 2016. Also, 2017 is turning out to be the best year in value terms for other prominent sectors like real estate, ecommerce, technology, RCP, and healthcare as well," the report added.
Commenting on the PE landscape, Vivek Soni, Partner and Leader for Private Equity Services, EY said, "As projected earlier, November 2017 has been a stellar month for investments as well as exits and we expect strong traction in December 2017 as well. 2017 has been the best year for Indian private equity. The Indian market is now considered as the most attractive destination for investment by global LPs (Limited Partners). In 2018, we project increased allocation/exposure to India by large global LP's, and expect continuation of the upward trajectory that we are witnessing in 2017 within both PE/VC investments and exits." November 2017 also recorded fund raise of US$675 million and fund raise plan announcements of US$2.5 billion. Fundraise in November 2017 was 50 per cent higher compared to November 2016 (US$450 million).