Private equity (PE) investment fell to USD 1.88 billion across 90 deals during the quarter ended March this year,less than half compared to the same period last year.
This was the third consecutive quarter of deceleration,says a report from research firm Venture Intelligence.
During the first quarter of calender year 2011,private equity firms had invested USD 3.61 billion across 107 transactions.
Venture Intelligence said there has been a dearth of mega deals during the quarter,which was the main reason behind the decline in the overall PE deal activity.
There were six reported PE investments worth over USD 100 million and none above USD 200 million during the quarter ended March,compared to 9 such deals in the same period last year,which included 5 transactions over USD 200 million.
Healthcare and life sciences cornered bulk of PE investments as the sector attracted USD 581 million (31 per cent of the value pie) across 14 investments during the period.
Three of the six investments worth over USD 100 million each during the quarter went into the hospitals and clinics sector. About USD 110 million was infused into Care Hospitals (by Advent International) and USD 100 million each invested into DM Healthcare and Vasan Healthcare (by Olympus Capital and by the Singapore Government-owned GIC,respectively).
Healthcare was followed by IT & ITEs companies with USD 308 million across 35 reported investments and BFSI (banking,Financial Services and Insurance) firms with USD 280 million across 11 investments.
The trend of the larger PE firms buying out the stakes of earlier PE/VC investors in Indian companies gathered momentum during the quarter.
The GIC-Vasan deal was one such case (which saw a part exit for Sequoia Capital India). The USD 104-million deal by General Atlantic in Fourcee Infrastructure also witnessed the complete exit for Mayfield,and the USD 50-million investment by Warburg Pincus saw part exit for Motilal Oswal PE.
Meanwhile,PE-real estate firms made 12 investments (amounting to USD 477 million across 10 deals with disclosed values) during the quarter ended March 2012.
The largest PE-realty investment announced during the first quarter of this year was GIC’s USD 100 million investment in a Godrej Properties office project in Mumbai’s Bandra Kurla Complex–the only deal over USD 25 million reported during the period.