1. Big-ticket PE deals back in vogue

    Big-ticket PE deals back in vogue
    Big-ticket PE deals back in vogueDaily News & AnalysisIn mid-January 2010, a consortium of private equity firms, including Baring, Sequoia Capital, Fidelity and Deutsche Bank, acquired a 16% stake in ...and more »
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    1. Last year we saw transactions happening, but a large proportion of them were really small. The investment in Towervision India is one example of a large-ticket deal. We should see quite a few large deals materialising in this calendar year, more so in the next 3-4 months.
    2. Average deal size also declined 46.1% to $20.9 million in 2009 from $38.8 million owing to the absence of big-ticket transactions.
    3. Investee companies engaging in PE deals have been awaiting monetisation of their respective businesses at the right time. In fact, I see some momentum in the buyout space already. Sectors like IT/BPO and consumer are some of the areas that should see some action in the coming months.
    4. A significant proportion of these exits are driven by their respective investors. Like for instance, the Jubiliant Food and D B Corp IPOs that saw PE firms like JP Morgan and India Private Equity Fund and Warburg Pincus exit. I think this process will continue as long as the investors see good value / returns from the planned IPO exits irrespective of the volatility in public markets.
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