Private Equity firms invested about $1.886 billion across 90 deals during the quarter ended March 2012, according to a study by private equity and M&A research firm Venture Intelligence. The investment amount was almost half the amount invested in the same period last year ($3.614 billion across 107 transactions) and represents the third consecutive quarter of deceleration in PE investments in the country.
The immediate previous quarter had witnessed $1.470 billion being invested across 120 transactions. There were six reported PE investments worth over $100 million (and none above $200 million) during Q1'12 compared to 9 such transactions in the same period last year (which included 5 transactions over $200 million).
Three of the above $100 million investments in Q1'12 went into the hospitals and clinics sector - $110 million into Care Hospitals (by Advent International) and $100 million each into DM Healthcare and Vasan Healthcare (by Olympus Capital and the Singapore Government-owned GIC respectively) reinforcing the year-end Venture Intelligence survey in which PE investors highlighted healthcare as the most attractive sector for investments in 2012.
Another Singapore government owned PE investor, Temasek, invested $137 million in publicly-listed FMCG firm Godrej Consumer Products.
Overall, the healthcare and life sciences industry attracted $581 million or 31 per cent of the value across 14 investments (amounting to 16 per cent of the investment volume) during the period. It was followed by IT & ITeS companies with $308 million across 35 reported investments and BFSI firms with $280 million across 11 investments.
Secondary transactions rise as global PE firms buy out stakes of earlier investors.