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PE Roundup – 3Q2018 & Sept‘18
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PE Quarterly Roundup – 3Q2018
Key Trends – Half Yearly Investments ►
On a Y-o-Y basis, quarterly PE/VC investments in 3Q2018 declined 23% in value terms compared to 3Q2017 (US$ 6.7 billion vs US$ 8.7 billion in 3Q2017) despite a 29% increase in the number of deals over the same period (178 deals vs 138 deals in 3Q2017). On a sequential basis, the quarterly decline in value of investments was 11% and 16% compared to 2Q2018 and 1Q2018 respectively. The decline in investments was mainly on account of fewer large deals (deals with value greater than US$100 million) in 3Q2018. 3Q2018 recorded 13 large deals aggregating US$3.9 billion compared to 18 such deals in 3Q2017 aggregating US$7 billion. 2Q2018 recorded 25 large deals aggregating US$6.1 billion, while 1Q2018 recorded 13 large deals aggregating US$5.7 billion.
►
Steady flow of large deals had helped each of the last four quarters record investments in excess of US$7 billion. Though the trend has been broken in 3Q2018, there were couple of large deals in the works in 3Q2018 that if concluded can add significantly to the overall investment tally for 2018. These include, TPG’s and ADIA’s US$1.2 billion funding of UPL for its overseas acquisition of Arystra and Westbridge, Madison and Rakesh Jhunjunwala’s US$1 billion investment in Star Health and Allied Insurance.
►
The largest deals in 3Q2018 include Softbank, Sequoia, Lightspeed and others investing US$1 billion in OYO Rooms, KKR’s US$ 530 million buyout of Ramky Enviro and AION-JSW’s US$400 million buyout of Monnet Ispat.
►
From the point of view of type of investment, Growth and PIPE deals recorded significant fall in investments. 3Q2018 recorded US$2.6 billion in growth deals (US$5.7 billion in 3Q2017 and US$3.5 billion in 2Q2018) and US$57 million in PIPE deals (US$599 million in 3Q2017 and US$690 million in 2Q2018). On the other hand, 3Q2018 was the best quarter for startup investments, with deals worth US$2.1 billion, being the best quarter for startup investments since 2Q2015 (US$1.7 billion). Buyouts also recorded healthy growth in 3Q2018 with US$1.3 billion invested across 9 deals compared to US$920 million across 6 deals in 3Q2017. This takes the total value of buyouts in 2018 till date to US$6.3 billion (32 deals), surpassing the previous record set in 2015 of US$3.9 billion across 29 deals.
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EY Analysis of VCCEdge Data
Key Trends – Half Yearly Investments (cont’d.) ►
From a sector point of view, most of the top sectors for PE/VC investments recorded noticeable declines in 3Q2018. Ecommerce, Real Estate, Financial Services, and Healthcare, which are some of the sectors that traditionally receive maximum PE/VC investments, recorded quarterly investment declines in excess of 50% on a Y-o-Y basis. Power & Utilities, Logistics and Technology were the few sectors to show improvement in 3Q investments compared to last year, albeit with very few deals
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EY Analysis of VCCEdge Data
Key Trends - Half Yearly Exits ►
If we exclude the Flipkart deal, at US$1.3 billion PE/VC Exits declined by 71% on a Y-o-Y basis in 3Q2018, making it the worst performing quarter in 2018 for exits.
►
The decline in exits in 3Q2018 was across most types both in terms of value and volume. Though exits via strategic sale were the highest ever at US$16.1 billion (16 deals), it was mainly on account of the single large US$16 billion WalmartFlipkart deal. Exits via secondary sale (sale to other PE funds) recorded US$390 million (7 deals), 73% lower compared to 3Q2017 in terms of value.
►
Volatility in the markets continued to impact open market deal activity as well as PE backed IPOs. 3Q2018 recorded just 14 deals worth US$647 million compared to 32 deals worth US$1.5 billion in 3Q2017, US$1 billion in 2Q2018 and US$890 million in 1Q2018. IPO market also recorded muted performance with just two PE backed IPOs in 3Q2018 (7 in 3Q2017) which include TA Associates selling its 11% stake in TCNS Clothing for US$72 million, and Micro Ventures selling its stake in Credit Access Grameen Limited for US$72 million.
►
From a sector perspective, E-commerce recorded highest value of exits in 3Q2018 (US$16 billion across 3 deals) mainly on account of the large US$16 billion deal followed by Financial Services (US$491 million across 7 deals).
►
The largest exit in 3Q2018 was also the largest exit ever for the Indian PE/VC industry which saw Softbank, Tiger Global, Accel and others selling around 77% stake in Flipkart to Walmart for US$16 billion.
Fund Raise ►
3Q2018 saw US$2.6 billion in fund raises, 17% higher compared to 3Q2017 and the highest quarterly fund raise ever. Sequoia’s US$695 million sixth fund and True North’s US$ 600 million sixth fund were the largest fund raises in 3Q2018. New fund raise plans announced in 3Q2018 stood at US$4.3 billion.
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EY Analysis of VCCEdge Data
PE/VC quarterly headline trends – Investments US$m
#
Total PE/VC Investments
9,000
250
220
188
178 146
6,000
164
165
157
163
178
177
200
138
129
121
182
150 100
3,000
50 5,139
-
6,003
5,043
4,310
3,658
3,097
5,138
4,179
6,214
8,686
7,379
7,986
7,501
6,681
0
2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018
Value (US$m) US$m
PE/VC Investments - split across asset classes
9,000
302
6,000 532
55 1,261
632 696
3,000
-
# of deals
4,608
4,687
3,715
78 1,019
350 889
148 432
106 837
3,071
3,078
2,154
4,041
287 1,033
2,254
300 1,440
1,634
5,639
4,901
146 789
1,451
763
51 253
3,874
4,894
6,130
6,566
5,918
2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018
PE/VC Investment (other sectors) (US$m)
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EY Analysis of VCCEdge Data
Real Estate (US$m)
Infrastructure (US$m)
PE/VC quarterly headline trends – Exits Total PE/VC Exits
US$m 5,000 4,000
59
66
69
64
69 59
61
64
17,272
64 51
44
42
3,000
#
50 40
2,000 1,000 -
75 50 25
2,749
1,205
1,358
2,067
1,073
2,046
1,483
2,033
2,681
4,550
3,749
1,824
3,713
1.3
0
2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018
Value (US$m)
# of exits
PE/VC Exits - split across asset classes
US$m
4 276
4,000 3,000
13 69
2,000 1,000 -
2,667
1 252
40
0 84
1,165
1,274
1,814
44 3 15 157 901
45
56 184
111
17,249 67 236 76 262
350 1,999
1,088
1,793
2,570
4,270
3,446
1,486
3,713
1.3
2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018
Other Sectors (US$m)
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EY Analysis of VCCEdge Data
Real Estate (US$m)
Infrastructure (US$m)
PE/VC quarterly headline trends – Fund Raise US$m
#
Fund Raise
17
16
2,000 11
14
12
13
11 9
8
11
11
15
12
9
10
1,000
-
1,938
1,285
1,325
2,075
942
2 320
5 976
1,287
719
2,234
1,533
1,304
1,701
2,607
2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018
Total funds raised (US$m)
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20
EY Analysis of VCCEdge Data
Total # of funds raised
-
Investments – (excluding Infrastructure and Real Estate) # of Deals
Total Investments (US$m) 3Q2018
3Q2018
5,918
3Q2017
6,130
3Q2017
Buyout PIPE
96
57
Credit Investment
561
280
1,283
Buyout PIPE
548
Startup/Early stage
122
Deal Type #
Deal Type US$m Credit Investment
168
2,392
Expansion/Growth
9
3 4 6
Startup/Early stage
2,088
664
4,077
$50m - $100m
Expansion/Growth
$20m - $50m
4,695
1,285
659 474
> $100m $50m - $100m
9
15 15
15
303 224
$10m - $20m
< $10m
261 172
< $10m
** Deal value not available on 19 out of 160 deals in 2Q2018 and 30 out of 151 deals in 2Q2017
EY Analysis of VCCEdge Data
10 12
$20m - $50m
$10m - $20m
Page 9
52
37
Deal Size # 3,409
565
90
69
Deal Size US$m > $100m
12
7
20 21 41
72
Investments â&#x20AC;&#x201C; Infrastructure and Real Estate Total Investments (US$m) 3Q2018
# of Deals
763
2Q2018
3Q2017
2,556
2Q2017
179
Buyout PIPE Startup/Early stage Expansion/Grow th
Credit Investment
486
52 30 59 247
PIPE
2
Startup/Early stage
2 2
62
$20m - $50m
5
2,295
196
3
> $100m $50m - $100m
1
$20m - $50m
158
5
30 31
$10m - $20m
2 2
< $10m
1 11
< $10m
2 2
** Deal value not available on 2 out of 10 deals in 2Q2018 and 5 out of 10 deals in 2Q2017
EY Analysis of VCCEdge Data
6
2
$10m - $20m
Page 10
7
Deal Size #
Deal Size US$m $50m - $100m
3
Expansion/Growth
1,626
536
4
2
Buyout
640
> $100m
16
Deal Type #
Deal Type US$m Credit Investment
11
3Q 2018 Investments â&#x20AC;&#x201C;Sector Cut 3Q2018 3Q2017
Top Sectors by value (US$m) 1,459
Ecommerce Financial services
899
Power & Utilities
895
Real Estate, Hospitality & Construction
763
Technology
229
Media & Entertainment Pharmaceuticals
16
2,254
23
15
Food and Agriculture
9
Logistics
217 39
Industrial Products 889
1941
*** RCP â&#x20AC;&#x201C; Retail & Consumer Products
EY Analysis of VCCEdge Data
Others
20
10 13
Real Estate
Retail & Consumer Products
33
11
8
Healthcare
656
217
-
36
Ecommerce
279
Others
Page 11
Finacial Services Technology
1,359
406
Metal & Minning Travel
2,849
Top Sectors by # of deals
6
8 8
3
11
12
7
28
32
43
Top PE Investments Top PE investments excluding Infrastructure and Real Estate in 3Q2018 Company
PE Investor
Sector
Stage
Oravel Stays Private Limited. (OYO Rooms) Ramky Enviro Engineers Limited. Monnet Ispat And Energy Limited
Lightspeed, Sequoia, Greenoaks, SoftBank
Ecommerce
Startup/Early Stage
KKR
Power & Utilities
AION - JSW
CLP India Private Limited
US$m
Stake (%)
1,000
NA
Buyout
530
NA
Metal & Minning
Buyout
400
75
Quebec Deposit and Investment Fund
Power & Utilities
Growth Capital
363
5
One97 Communications (Paytm)
Berkshire Hathaway
Financial services
Growth Capital
300
3
ANI Technologies (Ola)
Temasek
Transportation
Growth Capital
225
NA
Hiveloop Technology Private Limited
Lightspeed, DST Global
Ecommerce
Startup/Early Stage
225
26
Technology
Growth Capital
140
NA
Healthcare
Startup/Early Stage
120
NA
Pharmaceuticals
Growth Capital
105
35
CureFit Healthcare Private Limited
Blume Ventures Fund I, Mithril Capital Management LLC, Binny Bansal Accel, IDG Ventures, Kalaari Capital, Oaktree
Sai Life Sciences Ltd.
TPG
GreyOrange Pte Ltd.
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EY Analysis of VCCEdge Data
Top PE Investments Top Infrastructure and Real Estate investments in 3Q2018 Stake (%)
Company
PE Investor
Stage
Projects of three developers
Piramal Capital
Credit Investment
214
NA
3 Mumbai real estate projects of Lodha and Saporji Palllonji
KKR
Credit Investment
176
NA
Provenance Land Pvt Ltd
GIC Pvt. Ltd
Growth Capital
145
49
PBEL Property Development India Pvt. Ltd., Residential Projects
Peninsula Brookfield
Growth Capital
100
NA
Samhi Group
Piramal Capital
Credit Investment
96
NA
Page 13
EY Analysis of VCCEdge Data
US$m
3Q2018 Exits â&#x20AC;&#x201C;Analysis Total Exits (US$m) 3Q2018
# of Deals 17,272
3Q2017
4,550
3Q2018
40
3Q2017
65
Exit Type #
Exit Type US$m Open Market
647 1,472
Open Market
Secondary
390 1,424
Secondary
Strategic
382
Buyback
13 281
IPO
16,078
7
IPO
6
2
Financial Services Travel Technology Retail and Consumer Others
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897 491 1,561 225
7
Top Sectors #
Top Sectors US$m Ecommerce
16
11 1
32
9
Strategic Buyback
143 991
14
16,000
Technology
7
Financial Services Retail and Consumer
189 367 115 118 251 1,606
3 3 3
Ecommerce Infrastructure Others
EY Analysis of VCCEdge Data
9
6
1
12
4
2 12
13
Top Exits Top Exits in 3Q2018 Company
Sector
Sellers
Buyer
Exit Type
Flipkart Pvt. Ltd.
Ecommerce
Softbank, Naspers,Tiger, Accel, IDG and others
Walmart Inc.
Strategic
ANI Technologies (Ola)
Transportation
Helion Ventures, Accel India, Bessemer, Others
Temasek
Hexaware Technologies Ltd.
Technology
Baring Asia
Sai Life Sciences Ltd.
Pharmaceuticals
TCNS Clothing Company Pvt. Ltd. Credit Access Grameen Limited
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US$m
Stake (%)
16,000
77
Secondary
225
NA
NA
Open Market
160
8
TATA Capital
TPG
Secondary
105
NA
Retail and Consumer products
TA Associates
NA
IPO
72
11
Financial Services
MicroVentures
NA
IPO
72
80
EY Analysis of VCCEdge Data
Fund Raise
Top Fund Raise in 3Q2018 Status
Fund
Raised
Sequoia India
Raised
Strategy
Remark
695
Technology, Healthcare & Consumer Products
Sixth Fund
True North
600
Sector Agnostic
Sixth Fund
Raised
Matrix Partners India
300
Consumer Technology
Third Fund
Raised
Greater Pacific
300
Sector Agnostic
Second Fund
Raised
Lightbox Ventures
178
Consumer Technology
Third Fund
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US$m
EY Analysis of VCCEdge Data
PE Monthly Roundup – Sept’18
Key Trends ►
September 2018 recorded US$3.4 billion in investments, a 89% increase over September 2017 and almost twice the investments received in the previous month. The rise is mainly on account of few large deals of value greater than US$100 million. September 2018 had six large deals adding up to US$2.4 billion compared to seven deals of aggregate value US$1.3 billion in September 2017 and 5 deals of aggregate value US$1.1 billion in August 2018.
►
The US$16 billion Walmart-Flipkart deal dominated exits in September 2018.
►
There were US$289 million worth funds raised in September 2018.
Page 18
EY Analysis of VCCEdge Data
PE/VC monthly headline trends – Investments US$m
66
5,000 4,000
#
Total PE/VC Investments
55
55
53
46
53
73 61
80
67 56
56
55
60
41
3,000
40
2,000 1,000 -
20 1,795
2,095
Sep-17
Oct-17
2,637
2,647
Nov-17 Dec-17
3,506
1,438
2,972
Jan-18
Feb-18
Mar-18
2,392
1,381
1,617
Apr-18 May-18 Jun-18
Value (US$m) US$m
3,500
Jul-18
1,661
3,404
Aug-18 Sep-18
# of deals
PE/VC Investments – split across asset classes
5,000 4,000 3,000 2,000
300
1,000
1,264 230
Sep-17
322
300 684
435
820
1,653
Oct-17
Nov-17
Dec-17
1,634 243
2,686
1,195
388 951
Jan-18
Feb-18
Mar-18
2,212 1,773
440
PE/VC Investments(other sectors) (US$m)
Page 19
EY Analysis of VCCEdge Data
11
335
2,057
3,061
15
392
360
1,361
1,224
1,301
Jul-18
Aug-18
Apr-18 May-18 Jun-18
Real Estate (US$m)
3,393
Sep-18
Infrastructure (US$m)
0
PE/VC monthly headline trends – Exits US$m
#
Total PE/VC Exits
3,000 2,000
27
25
24
22
20
17
1,000 2,044
-
Sep-17
623
2,725
401
969
12
12
150
705
1,629
438
397
Jul-18
846
16,029
-
Aug-18 Sep-18
# of exits
16
16,029
212 2 76 80
1,832
-
Sep-17
158 466
2,708
67 62 272
813
97 53
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Other Sectors (US$m)
Page 20
1,638
9
PE/VC Exits – split across asset classes
3,000
1,000
12
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18
US$m
25
19 9
Value (US$m)
2,000
19
129 576
Mar-18
1,629
438
Apr-18 May-18 Jun-18
Real Estate (US$m)
EY Analysis of VCCEdge Data
1,638
7 13 377
844
Jul-18
Aug-18
Infrastructure (US$m)
Sep-18
PE/VC monthly headline trends â&#x20AC;&#x201C; Fund Raise US$m
#
Fund Raise 9
10
8
2,000
7
6
8 5 4
3
1,000
5
6
4
3
3
3
2
4 2
-
1,689
Sep-17
31
675
828
244
153
1,060
368
863
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Total funds raised (US$m)
Page 21
470
EY Analysis of VCCEdge Data
Total # of funds raised
257
Jul-18
2,063
288
Aug-18 Sep-18
-
PE Investments â&#x20AC;&#x201C; US$3,393 million over 55 deals Top Sectors by Volume
Top Sectors by Value US$m Ecommerce Financial services
Power & Utilities Others
15
Financial services
558
Technology Metal & Minning
Technology
1,337
12
Ecommerce
446 400
8
Business and Professional Services
3
Food and Agri
3
363
Others
299
Deal Value US$m (Volume)
14
Deal Type US$m (Volume) 1491(24) 2428(6)
500(3)
679(8) 82(19) < $10m
Page 22
61(4)
142(5)
$10m - $20m $20m - $50m
13(3) $50m $100m
1378(21)
> $100m
EY Analysis of VCCEdge Data
Credit Investment
9(1) Buyout
PIPE Financing
Startup/Early Stage
Growth Capital
Infra and Real Estate Investments â&#x20AC;&#x201C; US$11 million over 3 deals By Value US$m
By Volume
Real Estate
Infrastructure
11
-
Real Estate
3
Infrastructure
Deal Value US$m (Volume)
Deal Type US$m (Volume)
10(1)
1(1) < $10m
Page 23
10(1)
$10m - $20m $20m - $50m
-
-
-
-
-
$50m $100m
> $100m
Credit Investment
Buyout
PIPE Financing
EY Analysis of VCCEdge Data
1(2) Startup/Early Stage
Growth Capital
Top PE Investments Top PE Investments excluding Infrastructure and Real Estate in Sept 2018 Company
PE Investor
Sector
Stage
Oravel Stays Private Limited. (OYO Rooms) Monnet Ispat And Energy Limited
Lightspeed, Sequoia, Greenoaks, SoftBank
Ecommerce
Startup/Early Stage
AION - JSW
Metal & Minning
Quebec Deposit and Investment Fund
CLP India Private Limited One97 Communications (Paytm) Hiveloop Technology Private Limited GreyOrange Pte Ltd.
Page 24
US$m
Stake (%)
1,000
NA
Buyout
400
75
Power & Utilities
Growth Capital
363
5
Berkshire Hathaway
Financial services
Growth Capital
300
3
Lightspeed, DST Global
Ecommerce
Startup/Early Stage
225
26
Blume Ventures, Mithril Capital Management, Binny Bansal
Technology
Growth Capital
140
NA
EY Analysis of VCCEdge Data
Top Infrastructure and Real Estate Investments Top Infrastructure and Real Estate Investments in Sept 2018 PE Investor
Sector
Stage
Dwelve Spaces Pvt. Ltd.
Accel, Matrix Partners, Sequoia
Real Estate
Startup/Early Stage
10
NA
Beneficent Knowledge Parks and Properties Ltd.
Excelestar Ventures
Real Estate
Growth Capital
0.7
NA
Page 25
EY Analysis of VCCEdge Data
US$m
Stake
Company
(%)
Exits â&#x20AC;&#x201C; US$16 billion across 9 deals in Sept 2018 Exits in Sept 2018
Deal Value US$m (Volume)
Deal Value US$m (Volume) 16019(8)
Ecommerce Food and agriculture
16000(1) 18(1)
Pharmaceuticals
9(1)
Healthcare
1(1)
Technology
78(5)
9(1) IPO
Page 26
EY Analysis of VCCEdge Data
Buyback
Strategic
Secondary
Open Market
Exits â&#x20AC;&#x201C; Top Exits Top Exits in Sept 2018 Company
Sector
Flipkart Pvt. Ltd.
Ecommerce
TongueStun Food Network Pvt. Ltd.
Food and agriculture
Page 27
Sellers Softbank, Naspers,Tiger, Accel, IDG and others Uniqorn Ventures Fund, Haresh Ram Chawla
EY Analysis of VCCEdge Data
US$m
Stake (%)
Buyer
Exit Type
Walmart Inc.
Strategic
16,000
77
Zomato Media Pvt. Ltd.
Strategic
18
NA
Fund Raise Top Fund Raise/Announcements in Sept 2018 Status
Fund
Raised
Lightbox Ventures
178
Consumer technology
Raised
Motilal Oswal RE
79
Real Estate
Raised
pi Ventures
31
Sector Agnostic
Page 28
US$m
EY Analysis of VCCEdge Data
Strategy
Remark
About EY’s Private Equity Services Practice EY has been working with the private equity industry for more than 25 years, with approximately 25,000 seasoned professionals worldwide dedicated to the industry and its business issues. EY serves 74% of the top 300 PE firms included in the Global PEI 300 firms list. Private equity firms, portfolio companies and investment funds face complex challenges. They are under pressure to deploy capital amid geopolitical uncertainty, increased competition, higher valuations and rising stakeholder expectations. Successful deals depend on the ability to move faster, drive rapid and strategic growth and create greater value throughout the transaction life cycle. EY taps its global network to help source deal opportunities and combines deep sector insights with the proven, innovative strategies that have guided the world’s fastest growing companies. In India, EY is among the leading providers of advisory, tax, transactions and assurance services. The organization is also the number one professional services brand* in India, which is a testimony to our relentless commitment to deliver exceptional client service and create a better working world. EY has 16 offices spread across 10 cities in India. Worldwide, our 247,570 people across 150+ countries and 700+ cities are united by our shared values and their unwavering commitment to quality. ►EY’s India Private Equity Services Practice has been among the top advisors for private equity deals over the past ten years. EY has been awarded the “Most Active Transaction Advisor” award by Venture Intelligence for 2009-2013 and also the “Investment Bank of the Year, Private Equity” award by VC Circle in 2012 and 2017. ►EY’s India Private Equity Services Practice provides value to PE funds and their portfolio companies through its deep sector and service expertise. EY India is organized around key industry verticals in a matrix structure that enables us to offer an unparalleled blend of industry expertise and functional skills. We actively track about 15 sectors with sector leads driving our penetration in each of those sectors. Page 29
About EY’s Private Equity Services Practice (cont’d..) EY has been ranked as #1 Financial Advisor for over a decade across Mergermarket, Thomson Reuters and Bloomberg**. Our position as the foremost M&A advisor in the Indian mid-market enables us to create a robust deal origination pipeline for our PE/VC clients, acting as the tip of the spear of what is India’s dominant PE Services practice.
Merger market
40 29
24
18
2014
41
39
43
19
2016
2017
34
49
38
34
28 33
29 12
2015
Bloomberg
Thomson Reuters
18
21
20
19
2014
2015
2016
2017
26
21
21 15
2014
2015
2016 EY
Page 30
# 1 advisor on deal count in Financial advisory league tables across databases
Consistently maintaining a significant lead from closest compete
Adjudged as the Investment Bank of the Year at the VC Circle Awards 2017
2017
Closest compete
EY services for Private Equity We offer an array of services to Private Equity funds and their portfolio/investee companies through our various service lines. Partners (Personal tax)
Fund assurance (Assurance and Tax Structuring)
Fund Raising (Audit of fund performance)
Funds
Buyside advisory (M&A and valuations, Fraud, Investigation and Dispute Services)
Transaction Advisory Services
Buyside support (Financial Due Diligence, Tax Structuring and Diligence, Business DD, Environmental Compliance, CDM Human Capital, Valuations)
Portfolio Services Exit readiness
Transition
(IPO, GAAP Conversion, SOX Compliance, VDD, Sale Mandates, Clause 49)
(Transaction Integration, GAAP Conversion, Governance, Controls Assessment, MIS Development, Process Advisory, Standard Operating Procedures)
Distressed
Assurance
Growth
(Bank intermediary, working capital, cost reduction)
(Assurance, Tax Compliance, Risk Management, Corporate Governance Advisory, Internal Audits and Fraud reviews)
(Strategic Options, Technology Security, IT Strategy, Operational Improvement, Market Entry Options & Working Capital Management)
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Delivering issues-based solutions to the entire PE enterprise
Solutions
EY has established six distinct solutions reflecting the holistic set of challenges that PE firms face across all levels of the organization – the management company, the funds, and their portfolio companies. A
B
Operating model and automation
Global compliance and reporting
Deal origination
Integrated due diligence
Value creation
Exit readiness and IPO
Alternative asset managers need to drive efficiency through multiyear target operating models and infrastructure strategies to remain competitive. These align with strategic growth plans by leveraging vendor and service provider activities. EY defines and monitors data analytics and key performance indicators to annually assess data governance and risk against these target models.
Large asset managers have hundreds of non-US legal entities in multiple countries, and continually create new ones – all with different compliance obligations. Many are outsourced and require local knowledge. EY gathers the data, leverages local EY teams familiar with accounting and tax laws, performs data analytics to identify trends, risks and opportunities and monitors filing requirements.
The intense competition for a limited number of deals raises stakes to win for private equity firms. A proprietary investment approach, driven by sector insights, enables firms to confidently place winning bids that generate appropriate returns. EY’s global origination team turns opportunities into actionable strategies. Our proprietary knowledge and advanced analytics help develop strategic capital options to help firms achieve success.
Private equity firms conduct diligence on assets across strategic, financial, tax, operational and HR issues. Firms historically used issuebased advisors, managing different parties and consolidating findings at the end of the process. Employing EY’s integrated diligence approach at the early stages of a transaction provides more effective, comprehensive diligence on an asset, giving firms a distinct competitive advantage.
Private-equity firms face increasing pressure to attract fresh capital. This requires generating greater investment returns and demonstrating a consistent track record in creating value in their portfolio. EY’s value creation solution addresses these challenges across all five stages of the deal life cycle, including deal origination, diligence, inception, optimization and exit strategy.
Private equity firms must plan exits rigorously in order to successfully monetize their investment during the exit process in today’s challenging environment. Executives must identify key shortand long-term priorities prior to undertaking an IPO or alternative transaction. EY can advise deal teams and portfolio companies on exit alternatives, assess exit readiness, prepare a business for exit/IPO and create a value story for targeted buyers.
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Focused advisory solutions for private equity backed portfolio companies Growth Navigator Achieving your growth ambitions
Route to Market (RTM) – Deliver a successful strategy for your business
Performance improvement
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Having a broader perspective on the drivers of growth in your business and finding innovative ways to accelerate and sustain that growth can give you a competitive advantage. That’s why we’ve developed EY Growth Navigator™, an interactive experience that uses the EY 7 Drivers of Growth to help you and your leadership team assess your business’s current and aspirational position, and create a strategic road map to help you get there.
EY identifies focused opportunities for optimizing cost and growth after full assessment; designs new RTM, including different approaches for different segments (customers, regions, seasonal demand); identifies the optimal concessionaires’ model taking into account different distribution approaches; and supports the implementation of the RTM by providing IT specs and additional services (e.g., stock management options).
Depending on objectives and business context, EY helps the client develop a combination of short-term and long-term strategies to reduce costs, optimize process and bring in efficiency and effectiveness across all layers of business to deliver positive impact on EBITDA by ensuring optimal utilization of both tangible and intangible resources.
Focused advisory solutions for private equity backed portfolio companies (cont’d..)
Cyber security
Analytics - Generate insights to make smarter, faster decisions
IPO readiness – The first step in the IPO value journey
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EY assists internal teams to build cyber awareness and conduct company-wide training, as well as training of board of directors. EY supports in building regulations and compliance requirements with audit and readiness services. EY helps transform the security program and integrate information security and IT risk across the enterprise as well as help implement globalized data protection strategies to protect information that matters, with consideration of regulatory and industry compliance.
EY helps clients build data and information strategies using various analytics tools to deal with big data to address various areas of business, ranging from opportunity sizing and feasibility, operations and customer modelling, executive decision making, merger acquisition and valuation. EY helps across the capability value chain ranging from strategy, implementation, hosting and running the analytics functions.
EY’s IPO readiness service is the first step in what we describe as the “IPO value journey” and is designed to guide the client through a successful transformation from private to public status. Achieving readiness will ensure a strong debut in the capital markets. Getting IPO readiness right means implementing change throughout the business, organization and the corporate culture. As a public company, the client will be subject to increased filing requirements, transparency, compliance, scrutiny by investors and analysts, and overall accountability for delivering on promises. Successful businesses start to prepare typically 12 to 24 months before the IPO — in many cases with an IPO readiness assessment.
Ernst & Young LLP EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
Contacts Private Equity Services Practice Vivek Soni Partner and National Leader E: Vivek.Soni@in.ey.com
Dilip Dusija Associate Partner E: Dilip.Dusija@in.ey.com
Narendra Rohira Partner, Transaction Tax E: Narendra.Rohira@in.ey.com
Nachiket Deo Partner, Transaction Tax E: Nachiket.Deo@in.ey.com
Subramaniam Krishnan Partner, Tax & Regulatory Services E: Subramaniam.Krishnan@in.ey.com
Research and Insights Allwyn D’Souza Manager E: Allwyn.Dsouza@in.ey.com
Brand, Marketing and Communications Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/in. Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata – 700016 © 2018 Ernst & Young LLP. Published in India. All Rights Reserved. This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.
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Pooja Bhalla Mathur Vice President E: Pooja.Mathur@in.ey.com
Shreya Sharma Assistant Manager E: Shreya4.Sharma@in.ey.com
