During Jan-Mar 2013, exit deals in the private equity (PEs) space is estimated at $1.028 billion through 24 deals compared to exit worth $1.732 billion from 21 deals in Oct-Dec 2012 quarter.
The exits declined 18 per cent in value and 29 per cent in volume compared to Jan-Mar 2012. During this quarter, PEs exited $1.260 billion worth of investment from 34 deals.
During Jan-Mar 2013, majority of exits came from IT and ITeS and the BFSI sectors, which contributed approximately 59 per cent of the exit value and 38 per cent of the volume.
The BFSI sector tops the list for PE exits with five deals worth $393 million. In terms of exit value, the IT and ITeS sector stands second, aggregating $213 million from four deals during this quarter.
67 per cent of the total exit volume happened through public market sale (nine exits) and strategic sale (seven exits). PEs also exited their investment through secondary sale (five exits), buyback (two exits) and through IPO (one exit).
Analysts feel that the rise in exits in the IT and ITeS sectors can be attributed to the uncertain macroeconomic and political environment. Some feel that the regulatory and tax concerns dented confidence of private equity investors.
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