Realty, infra sectors drive buyouts in India to record high in 2019

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Buyout deals dominated private equity (PE) and venture capital (VC) investments in India last year, hitting a record high in both volume and value.

In 2019, there were 58 transactions worth $16.2 billion, compared with 49 transactions worth $10.4 billion in 2018, which was the previous record, according to a report by the Indian Private Equity and Venture Capital Association and consulting firm EY.

In terms of overall investments, which also touched a record high of 1,037 deals worth $48 billion, buyout transactions held the largest share among PE/VC deals, compared to about 28% share in the previous year.

The growth in buyout deals was driven by the real estate and infrastructure sectors, which saw a 180% increase in value and 123% increase in the number of buyouts, compared to the previous year.

Source: EY
Source: EY

Growth capital investments, the second most preferred transaction type, grew 9% to $14.5 billion in 2019 on a year-on-year basis. The growth-stage deals were also driven by a spurt in growth investments in infrastructure and real estate sectors, which rose by 136% to $7.3 billion in 2019, compared to the previous year.

Startup investments also broke records in 2019 and were the highest ever in terms of value at $7.9 billion.

The primary contributor to the increase in startup investments was SoftBank’s $810-million infusion into Oyo (Oravel Stays Pvt. Ltd), which was also the largest startup deal in 2019.

In terms of sectors, infrastructure, accounting for investments worth $14.5 billion, contributed to 30% of all investments by value in 2019, compared to 12% in 2018, and more than the investments of the previous seven years combined.

The largest deals during the year included Brookfield’s buyout of Reliance Jio’s tower arm for $3.7 billion and Reliance Industries Ltd’s East-West pipeline for $1.9 billion. Brookfield-Reliance Jio’s tower deal was also the largest ever in the Indian PE/VC industry.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.