Mumbai: Despite the volatility in the domestic market, private equity space is buzzing with activity as both fresh investments and PE exits have seen sharp spike lately.
And marquee firms like Japan's Softbank, Bain Capital buyouts funds like Blackstone, True North, AION and Carlyle are actively making investments in Indian companies.
In February 2019, PE firms made investments worth $2.6 billion across 61 deals and exits worth $472 million across 10 deals.
Also private investment in public equity (PIPE) investments recorded a rebound in February 2019, emerging from a four year low of $2.8 million recorded in January 2019. At $431 million, PIPE investments in February 2019 were highest in past eight months.
Both investments and exits were supported by improvement in deal activity in listed securities as stability emerged in the financial markets after witnessing significant volatility in the previous few months.
PE players managed to exit from their investments in domestic companies despite the volatility in equity market. PE exits in the past month saw a three times jump in value compared to the February 2018, according to EY's Private Equity Monthly Deal Tracker.
"After a relatively subdued start in to the year, February 2019 has been a good month, recording strong performance in both investments and exits," said Vivek Soni, Partner and National Leader-Private Equity Services, EY. "We think 2019 could very well be one of the best vintages year for Indian PE/VC investments," he further said.
Growth investments, at $1.2 billion, were 27 per cent higher compared to February 2018. According to E&Y, the consulting firm, the exits are happening on the back of a rebound in open market exits in wake of the volatility in the stock markets subsiding.
The firm said there were four open market exits in February 2019 worth $351 million, more than three times the value recorded in February 2018 and highest in past six months.
The largest exit in February 2019 saw Bain Capital and GIC sell 5 per cent stake in Genpact for $324 million.
