Private equity deal values dip 50% in May: Grant Thornton

Private equity (PE) investments saw 50 percent decline in value terms in May at USD 1,180 million amid fall in big-ticket deals and cautious investor approach, says a report. According to assurance, tax and advisory firm Grant Thornton, 53 PE deals worth USD 1,180 million were announced in May this year, while the year-ago month saw 68 transactions worth USD 2,363 million.

Compared to April 2018, May witnessed a declining trend in deal values (down 48 percent) and deal volumes (down 34 percent).

"Slowdown in PE/VC deals may be attributed to the wait-and-watch approach by PE/VCs, cautious approach on ongoing transactions resulting in lengthening of the deal life cycle or absence of large ticket transactions," Grant Thornton India LLP Director Pankaj Chopda said.

Canada Pension Plan Investment Board (CPPIB) and Allianz Capital Partners' 55 percent stake acquisition in India infrastructure trust IndInfravit Trust for USD 280 million was the top PE deal.

Other top deals announced during May include GIC-Gamnat acquiring 6 percent stake in Godrej Properties for USD 152 million and Camas Investments acquiring 5 percent stake in AU Small Finance Bank Ltd for USD 147 million.

Sector wise, May was dominated by investments in startups, which contributed to 60 percent of total investment volumes.

The fintech segment attracted significant investor attention with nine deals, followed by the health tech and retail space with three investments each.

Government initiatives like the Pradhan Mantri Awas Yojana and the Housing For All agenda have boosted the affordable housing segment with real estate attracting 25 percent of the total PE investments last month.

Sectors such as infra, banking and retail have also attracted over USD 100 million investments, indicating an encouraging trend.