PE/VC investments at $3.2 bn, above $3 bn second time in 2018: EY

New Delhi: On the back of 10 large deals, private equity (PE) or venture capital (VC) investments reached $3.2 billion in May this year in India, a report said on Thursday. This was the second time when they crossed the $3 bn level this year.

However, in terms of deal value, the investments in May were 7 per cent lower compared to $3.4 billion recorded in the same month last year.

“May 2018 recorded investments worth $3.2 billion across 53 deals, on the back of ten large deals of value greater than $100 million,” EY’s private equity monthly deal tracker said.

“May 2018 recorded $3.2 billion in deal value, a 7 per cent decline compared to $3.4 billion recorded in May 2017.”

However when compared to April 2018, there is a 34 per cent increase in deal value and in volume terms, deals declined by 5 per cent in the month to 53 as compared to 56 in corresponding month last year.

“Private equity or venture capital investment activity in India has continued its strong performance in 2018 despite some global headwinds with both investments and exits exceeding the numbers recorded in the first five months of 2017. Investments in the first 5 months of 2018 have already surpassed 50 per cent of the value recorded in 2017,” said Vivek Soni, Partner and National Leader Private Equity Services, EY.

After January, May was the second time in 2018, when these investments crossed $3 billion mark and exits recorded $1.6 billion across 18 deals, primarily on account of a single large exit by TPG worth $769 million, the report said.

From a sector point of view, industrial products and retail and consumer products sectors posted record level of investments worth $945 million and $851 million respectively, mainly on account of the two large deals, the Vishal Mega Mart and the Walmart-Flipkart.

Infrastructure and real estate sectors recorded just $440 million in investments across four deals.