Monday, June 24, 2019
News
NEWS HOME
»
PRN INDIA
Bain & Company's India Private Equity Report 2019, Released
  SocialTwist Tell-a-Friend  
   

MUMBAI, May 14, 2019 /PRNewswire/ --

- PRIVATE EQUITY FUNDS RECORDED INVESTMENTS WORTH $ 26.3 BILLION IN 2018, SECOND HIGHEST IN THE LAST DECADE

- Bain & Company's latest India Private Equity Report finds 2018 was an excellent year with 265 exits valued at nearly $33 billion and fund raising worth $714 billion, the third-largest amount on record

The private equity market in India remained a hotbed for deal-making in 2018 with a total of $26.3 billion in investments across 793 deals, which was the second highest in the last decade in total investment value, according to Bain & Company's '2019 India Private Equity Report', released today in partnership with Indian Private Equity & Venture Capital Association (IVCA).

Private equity funds are also increasingly prioritizing deal quality over quantity, with the top 15 deals comprising about 40 percent of total deal value and the number of deals greater than $50 million, increasing from the previous year. The market for exits remained strong as well, with 265 exits valued at nearly $33 billion in 2018, signalling investor confidence in the Indian market. Nearly half of last year's exit value resulted from the $16 billion sale of Flipkart to Walmart. However, even excluding that, 2018 was one of the best years for exits in the last decade.

In addition, the industry had an excellent run at raising funds to the tune of $714 billion from investors during the year, the third-largest amount on record, bringing the total capital raised since 2014 to $3.7 trillion.

The Bain & Company report noted that diversified fund raising across Asia-Pacific had slowed down, as a result of the Chinese government's decision to tighten rules on PE investment. However, India-focused dry powder remained healthy at $11.1 billion, again an indication that high-quality deals do not lack capital.

With a growing number of funds, increasing from 474 active participating funds in 2014-16 to 491 during 2015-17, competitive pressures in the market intensified. Investors, both local and global PE firms, viewed this as the biggest competitive threat.

Arpan Sheth, Partner, Bain & Company and one of the lead authors of the report said: "The Indian market signalled investor confidence with the year 2018 proving to be one of the best years for exits in the last decade. Considering how India's economy is poised for growth in the coming year, many more exits are expected during the next few months. Also, with 265 exits valued at nearly $33 billion in 2018, the public market remained the most preferred mode, with strategic exits."

Consumer tech and banking, financial services and insurance (BFSI) remained the largest industry sectors for investment by value. While consumer tech investment was still large at $7 billion, it actually shrank from more than $9 billion in 2017. BFSI also remained dominant with almost $5 billion of investments in 2018, driven by a rising class of non-banking financial companies (NBFCs) that continue to flourish in the ecosystem. The notable large investments in 2018 across the two sectors included investments in HDFC Bank, Star Health and Allied Insurance, Swiggy, OYO Rooms, Paytm and Byju's. The market also witnessed increased investment activity in consumer/retail, with multiple deals in food (Ching's Secret, Gemini Edibles) and apparel (V-Bazaar Retail).

The average deal size in 2018 remained somewhat flat. Small-ticket deals of less than $25 million decreased, as did those for transactions greater than $100 million. Further, the average deal size in consumer tech declined approximately 30 percent, due primarily to the absence of large 'Flipkart-esque' deals (such as SoftBank's investments of $2.5 billion in Flipkart and $1.4 billion in Paytm) which had pushed up average deal size in 2017.

There was also an increase in majority deals and late-stage investments and buyouts. These featured a few large individual buyouts like Star Health and Allied Insurance ($930 million) and Prayagraj Power Generation Company ($830 million). In the coming months, funds expect further investment activity in BFSI and consumer/retail, even though the valuations are still perceived to be high. Healthcare is another sector of rising interest, with funds eyeing players across the spectrum-pharmaceuticals, equipment, single-specialty hospitals and clinics, diagnostics and others. Interest in technology and IT will be largely driven by rapidly growing enterprise tech (SaaS) companies that operate out of India and sell globally.

In terms of fund-raising, buyout funds continued to draw the biggest share of capital, but investor interest during this record stretch was broad and deep, benefiting a variety of funds. Investors looking for diversification flocked to Asia-Pacific's relatively healthy long-term growth profile. However, after a few strong years, fund-raising has slowed across the region. Only 14 percent of funds raised globally were focused on the Asia-Pacific in 2018, compared with 23 percent in 2017.

New asset classes like Alternate Investment Funds (AIFs) and distressed-asset management have increasingly gained traction in the Indian market, aided by government regulations and tax breaks. Funds raised by AIFs more than doubled from approximately $2.4 billion in 2016 to approximately $5.5 billion in 2017, and are estimated to have exceeded $7 billion in 2018. The number of AIFs registered in India almost doubled from 268 in 2016 to 518 as of February 2019. Fund-raising will continue being a key priority for many investors in India, although most expect it to become more challenging in the next 12 months.

"It was an excellent year for PE in India. While investment value reached the second highest level of the last decade, exit values were the highest in the last decade, which points to investor confidence and maturity of the Indian PE landscape. Going ahead, we believe there is sufficient India-focused dry powder to ensure high quality deals don't lack capital," said Sriwatsan Krishnan, Partner, Bain & Company and a co-author of the report.

As for exits, they increased across sectors, with the primary contributors to exit values being consumer tech, IT, ITES, and BFSI. A few large exits dominated in 2018, with the top 10 exits accounting for 70 percent of total exit value. Apart from Flipkart, these included Intelenet Global Services Pvt. (Blackstone), GlobalLogic (Apax), Star Health and Allied Insurance (multiple funds) and Vishal Retail (TPG). The public market remained the most preferred mode for exits-though there was a spike in strategic exits, primarily driven by consumer tech. Over the last five years, funds have made reasonable returns across most sectors, with consumer tech, IT/enterprise tech and BFSI having the highest multiples on invested capital.

According to Bain & Company's survey of investors, top-line growth, cost and capital efficiency are expected to be the biggest creators of future value. Further, keen buyers and strong management teams played a major role in successful exits. Those that did not meet expectations were often the result of management issues and macroeconomic headwinds. A majority of survey respondents felt that net returns in the next three to five years would stay in the same ballpark as today.

Given how India's economy is poised for growth in the coming year, and with capital markets on an upswing, many more exits are expected during the next few months. However, rising valuations and interest rates continue to pose concern for most investors.

About Bain & Company's Private Equity Business  

Bain & Company is the leading consulting partner to the Private Equity (PE) industry and its stakeholders. PE consulting at Bain has grown eightfold over the past 15 years and now represents about one quarter of the firm's global business. We maintain a global network of more than 1,000 experienced professionals serving PE clients. Our practice is more than triple the size of the next largest consulting company serving PE firms.

Bain's work with PE firms spans fund types, including buyout, infrastructure, real estate and debt. We also work with hedge funds, as well as many of the most prominent institutional investors, including sovereign wealth funds, pension funds, endowments and family investment offices. Bain & Company supports its clients across a broad range of objectives that include deal generation, due diligence, immediate post-acquisition and ongoing value addition, exit planning, firm strategy and operations, and institutional investor strategy.

About Bain & Company  

Bain & Company is the management consulting firm that the world's business leaders come to when they want results. Bain advises clients on private equity, mergers and acquisitions, operations excellence, consumer products and retail, marketing, digital transformation and strategy, technology, and advanced analytics, developing practical insights that clients act on and transferring skills that make change stick. The firm aligns its incentives with clients by linking its fees to their results. Bain clients have outperformed the stock market 4 to 1. Founded in 1973, Bain has 58 offices in 37 countries, and its deep expertise and client roster cross every industry and economic sector. For more information visit: http://www.bain.com. Follow us on Twitter @BainAlerts and @BainIndia .

About Indian Private Equity & Venture Capital Association (IVCA)  

IVCA is the oldest and most influential PE/VC Industry body in India, with the sole focus to promote the AIF asset class within India and overseas. IVCA's mission is to promote a healthy environment for the growth of private equity and venture capital, which is needed to support economic growth, good governance, entrepreneurship, innovation and job creation in India. IVCA stands for the values of good governance, environment protection and poverty reduction through growth of the private sector. It helps establish high standards of governance, ethics, business conduct and professional competence. We reach out to the far flung areas of India and also stand ready to assist on a global scale to contribute significantly. IVCA is a non-profit organization powered by its members. The members are influential firms from around the world, including private equity and venture capital funds, corporate advisors, lawyers and institutional advisors.

To receive a copy of the report or arrange an interview with its authors, contact:
Indian media contact:
Shubham Mukherjee
shubham.mukherjee@bain.com
+91-9004320000

International media contact:
Nicholas Worley
nicholas.worley@bain.com
+852-2978-8830

More News by PR Newswire India

Medtech Nears its Golden Age Focusing on Value-based Care

Margaret Franklin, CFA, Appointed CEO and President of CFA Institute

Sirtex Medical reaches milestone 100,000th patient dose delivery of SIR-Spheres® Y-90 resin microspheres

UBM India Announces the SAFE South India and OSH South India Exhibitions in Hyderabad

Tethr and Red Box Announce Partnership to Accelerate and Simplify the Delivery of Voice of Customer Analytics Solution

HGC launches new API hub to further advance digital transformation

ANAROCK Partners With Aldar to Market its Abu Dhabi Properties in India

SutraHR Launches India’s 1st HR Toolkit - StartupHR Toolkit

IIT Faculty Join Hands to Give Students Top Ranks at Giraffe Learning

Admissions Open at IDeA Design College

TiE Mumbai and Dubai International Financial Centre (DIFC) Help Indian FinTechs Scale Their Business Across Middle East, Africa and South Asia Region

Glenmark to Partner With Novartis to Promote, Commercialize and Distribute Three Respiratory Products in Brazil

From Smart Washing to the Future of Clothing and Fabric Care: Haier Unveils Its Latest 2019 Innovations to Enrich Its Internet of Clothes Capacity

INTL FCStone Opens IT Development Services Office in Bangalore, India

"Forging a new energy future" - iCEP Presents AOGC

Suning.com announces the acquisition of Carrefour China to achieve leaping development of FMCG retailing operations

CECEP Solar Energy Technology Unveils Cost-Effective PV Products and Solutions at SNEC 2019

Sebastián Yatra Premieres New Single "RUNAWAY," In Collaboration With Jonas Brothers, Daddy Yankee, And Natti Natasha

MEIL's Worlds Biggest Pumphouse Inaugurated

Asia’s Premier Wedding and Event Photography & Film Making Festival by Capturing WOW

Casablanca and Toronto Forge Closer Links to Foster Global Financial Services Collaboration

Hunt for Indian K-pop Stars Begin for Z-POP DREAM Season 2

Social Kinnect Evolves its Brand Identity to Kinnect

Immerge Knowledge Labs Launches India’s First End-to-End Emerging Tech and XR Business Consulting Firm

YANNI will Perform at the Prambanan Jazz Festival 2019 on July 6th

"All Night," Third Song From BTS WORLD's Original Soundtrack, To Be Released On June 21

JNA Awards reveals 2019 Honourees

Merck's Massachusetts-based Business Sectors Named 'Best Places to Work' by Boston Business Journal

Giift Launches CoolfenPay, a Fully Integrated Points Payment Gateway

SPIE To Acquire Photonex, UK's Top Photonics Exhibition

Universal Fibers Expands Finished Yarn Capabilities in Europe and Asia

Artprice: France's Cultural Policy is Not in the Country's Best Interests According to thierry Ehrmann

Instart Becomes The First Cloud-Based Security Service To Deliver Complete Web App and API Protection

The Web of Science Group Releases 2019 Journal Citation Reports, Revealing the World's Most Influential Journals

Grand Slam Tennis Champion, Naomi Osaka, Named Newest bareMinerals Global Ambassador

Navitas Earns 2019 Global Technology Innovation Award for GaNFastâ„¢ Power ICs

Organica Water Awarded Monumental Project in India

Definiens & Targos Innovation: AI-powered multiplex IHC biomarker analytic solutions for precision medicine

Early Detection Cancer Camp Organized by Shree Ramkrishna Knowledge Foundation at Lathi Taluka in Amreli

Avon appoints HCL Technologies as IT infrastructure Services Partner to Support ongoing Digital Transformation

Mohit Bharatiya, who Introduced India to Gold Lending Rates and Gold Spot Exchange, Steps Down From the Jewellery and Bullion Body

founderINDIA Launches Business Class - a Chat Show With Leading Entrepreneurs

Giftalove.com Launches Online Service of Same-day Flower Delivery Nationwide

Suning's Tax-free Subsidiary Laox Announced a Fundraising of 10.1 Billion Japanese Yen to Expand China Business and Global E-commerce

REEL Strengthens Board of Directors and Senior Leadership Team With New Appointments to Support Next Phase of Growth

PwC Launches Solution Supporting Audit of Cryptocurrency

EB5 Capital Visits India to Raise Investment for New York Ritz-Carlton Project as the Hotel Chain Comes to Pune and Mumbai for the First Time

Aeroflot Expands Route Network for Summer 2019

Flexible Workspace Cements its Place as Mainstream Real Estate Asset Class; Significant M&A Activity Forecast in 2019 as Sector Consolidates: Colliers International India

Diversity and Inclusion Still at a Nascent Stage in India, Says a JobsForHer Report on Gender Diversity

Glenmark Pharmaceuticals Receives Tentative ANDA Approval for Clindamycin Phosphate Foam, 1%

Mango Hotels Launches 46 Key Boutique Hotel in Haridwar

Versa Networks Achieves NSS Labs Recommended Rating in the 2019 SD-WAN Group Test with its Security-Enabled SD-WAN

First-ever successful mind-controlled robotic arm without brain implants

Learn How to Map Your Organization's Journey to Customer Satisfaction and Success

HONOR Kicks off HONOR 20 Global Availability, Continues Record-breaking Sales Performance in China

Global Premiere of Renault TRIBER in India

LG U+ Selects iBwave as the Tool of Choice to Bring Asia's First 5G Stadium Design

Engine Restoration Begins on One-of-a-Kind Ferrari Boat

Waystar's Uniquely Agile Ambulatory RCM Solution for Automating Claims Resolution Acclaimed by Frost & Sullivan

Employees Rate Enterprise's Pam Nicholson as Top CEO for Fourth Year in a Row

Siklu Delivers Public Safety and Public Wifi for the City of Cambridge, Ontario Canada

UNSW's India Open Day Returns for a Promising 2nd Innings

Retraining and Retaining: The effect of Automation

Arms Race Driving Investment in C4ISR, Missile Defense Systems, and Network-Centric Warfare Models

EdgeVerve Product TradeEdge Receives POI Best-in-Class Award for Distributor Management

EuroKids Franchise Orientation and Awards Night - Bringing Together the Partners for a Celebration

JD Institute is now Certified as 'Global League Institute' at the House of Commons by Great Place to Study Research Institute

MEIL Constructs the Largest Lift Irrigation Marvel: KLIP Ready for Inauguration

Data Analytics Outsourcing Market in India is Worth $27 Billion: Study by AIM & Praxis Business School

Kitchen Brains® appoints Dave Jendal Vice President, Global Business Solutions

QS World University Rankings 2020: MIT Top, US Universities Hit Historic Low

Increase in Interest for EB-5 in India - EB-5 India Reaches its per Country Limit in July, 2019

Capsave Finance Pvt Ltd. posts net profits in second year of operations

Libyan Sovereign Wealth Fund Refused Permission to Appeal

Frost & Sullivan Global Survey Outlines the Next Wave of Technology Disruptors

Aeroflot Named Best Airline in Eastern Europe for Eighth Time at Skytrax World Airline Awards 2019

Arria NLG and UiPath push digital transformation and automation forward with new strategic partnership

Piramal Pharma Solutions recognized by Frost & Sullivan for its End-to-End Integrated Services Across the Entire Drug Development Life Cycle

Cendyn announces strategic follow on equity investment from Accel-KKR

Brickwork Finance Academy Proudly Conferred the Seventh Convocation and Announced the Eighth Inaugural of its Banking and Financial Analyst Certification Program

Publicis Sapient Announces John Maeda as Chief Experience Officer

Art of the Wild Comes to Life in Paris at the Extravagant Launch of HyperNature, an Event by Perrier-Jouët

Hatsun Agro Product Ltd – Update on Start of Cattle Feed Production in Maharashtra and Expansion of Company Retail Outlets

SubAir Could be a Solution to the Wet Outfields of the Cricket World Cup

US Army deploys Howler counter-UAS capability into the battlefield

LyondellBasell and Neste announce commercial-scale production of bio-based plastic from renewable materials

Casio has Inducted a Market Sweep Action in Kolkata

Global 3D Print Materials Market for Healthcare Industry Set for Quantum Change and 20.3% CAGR Growth from 2018 to 2025

The Republic of Ecuador Announces the Results of Its Invitation for Offers to Tender for Cash Its 2020 Notes

Amazon India Emerges as the Country's Most Attractive Employer Brand Followed by Microsoft India: Randstad Employer Brand Research 2019

ColorTokens Takes Zero Trust Security to a New-generation by Unifying Network and Endpoint Security Into a Single, Cloud-delivered Platform

Companies with a strong travel culture have a competitive advantage: New research from Harvard Business Review Analytic Services in association with Egencia

Thomas Wittek Appointed as R. STAHL India MD and Board Member

RateGain Acquires BCV to Help Hotel Chains Maximize Guest Lifetime Value

Wise MPay Partners With Jelurida to Launch Blockchain Financial Services Platform in Southeast Asia

India's SME-focused Digital Neo Bank EZOTO Gearing up for Launch in June 2019

Aiozium Launched SaaS-based Marketing Intelligence Tool Powered by AI

TV18 Broadcast India Upgrades its Newsgathering Operations with Over 100 LiveU LU600 HEVC Units

Exotel Turns Eight, Eyes the Global Customer Communication Market

Comscore Appointed as Official Digital Partner for Ad Rates in India

Ciao Green Collaborates With ICICI Home Finance to Design 140 Branches Across India

Golden State Killer Case Selected As 2019 DNA Hit Of The Year

Artprice (New York) - Thierry Ehrmann: Patrick Drahi's Acquisition of Sotheby's Confirms the Art Market's Entry Into the Digital Era of the 21st Century

Citi, Societe Generale, DNB and other leading international banks promote greener global shipping through new principles

Bitdefender Expands APAC Presence With New Strategic Hire

IGP (Israel Growth Partners) Together With Its Major LPs Invest $110M in Cellebrite

The HONOR 20 Color Report: 'Positivity' in Vogue in Fashion Capitals London and Milan

LONGi ranked the most financially stable PV manufacturer by Bloomberg NEF

GCL System Integration Among First Companies Awarded LeTID test Certificate from TÃœV Rheinland

Canopy Growth provides update on international operations and activities

Polygoons, Inc Enhances its Augmented and Virtual Reality Technology

Coursmy Launches Global Live and Video E-learning Marketplace Platform

6th Anniversary of BTC Futures Trading, OKEx Enhanced Risk Management System for a Better "Future"

DLF CYBERHUB and AMPM Café Celebrated Father's Day With Harley-Davidson Riders

Thailand's surge in IMD competitiveness list reflects dynamic economy, says BOI

TB Joshua to Host Meeting in Nazareth, Israel

OPPO Roars for Team India; Released Song ‘Jeet Pe Apna Haq Hai’ Created With Fans’ Heartbeats

From Black Hole Imaging to NASA Climate Research - Supermicro High-Performance Systems Support Major Scientific Discovery & Exploration Even to Distant Galaxies

Seamless Air Alliance showcases technologies enabling the future of inflight connectivity at Paris Air Show 2019

Sino-Russian (Harbin) economic and trade index launched to serve as barometer of bilateral trade

Danone and Migros CEOs Elected New Co-Chairs of The Consumer Goods Forum Board

Anant National University Welcomes its New Provost, Dr Anunaya Chaubey

One Man's Dream - India's Digital Awakening

Snehal Nagarsheth Joins Anant National University as Dean, School of Architecture

Systech and Toppan Sign Partnership Agreement to Deliver Brand Protection Solutions Worldwide

Top 10 Disruptive Digital Media Houses to Watch Out for in 2019-20

The 2019 China and South Asia Aviation Trends Forum Promotes Common Development through Interconnection and Cooperation

edelkrone Introduces Their First ORTAK Product

Health Horizons' Original Recipes Transform the Hemp Industry

FE CREDIT, Focussed on First Time Card Users in Vietnam, Crosses the One Million Cards Milestone and Gets the "Best in Card Acquisition" Award from Mastercard.

SALT Announces Its Signature Global Thought Leadership Conference In Abu Dhabi, UAE

The Cost of Anti-Money Laundering Compliance in Asia Pacific Region Increased 10% in Past 24 Months, Finds Study by LexisNexis Risk Solutions

Kemin Launches New Vision and Logo for the Future

Rove At The Park Opens Doors to a Thrilling Lifestyle Experience in Dubai Parks and Resorts

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
Delhi: Doctor held after video showing h...
Opposition should rethink, but its lead...
Will behead Muslim youth who harass Adiw...
PM Modi, Shah condole death of Rajasthan...
Why are Sonia, Rahul not in jail, if the...
Pakistan didn't enter Indian airspace af...
More...    
 
 Top Stories
Another Trinamool MLA to defect to ... 
Singer Tove Lo loves having career ... 
Rs 50 lakh stolen from Gulmarg Gond... 
Haryana Congress splits into two fa... 
Jagan Reddy orders demolition of Pr... 
J-K: Miscreants involved in damagin... 
Microsoft planning a foldable Surfa... 
Researchers build AI drone that can...