Private Equity Round Up - 3Q 2018 by EY India

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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.

Page 3

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.

Page 5

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)

Page 7

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.

Page 12

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

Page 14

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

Page 15

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

Page 16

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