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The Global Corporate AdvisorThe Corporate Finance newsletter of Crowe Horwath International

September 2013

Inside This Issue:Welcome 1

Latin America M&A Overview 2

US Private Equity Market Update 5

United Kingdom Private Equity Update 7

Australian Private Equity Update 11

Navigating Choppy Waters: The Outlook for India’s Private Equity Market 16

Contact UsThe GCA team is here to respond to your needs relating to M&A transaction support, valuations and M&A advisory services. If there is a topic you would like us to cover in future issues of the GCA newsletter, don’t hesitate to contact Peter Varley, Chairman of GCA at [email protected]. Alternatively, please contact your local member of the GCA team to discuss your ideas.

Roberto PerezLatin America Regional Leader+54 11 5918 [email protected]

Hola y bienvenidos to the September issue of Global Corporate Advisor, brought to you by the Latin America GCA team.

In this month’s issue, we provide a comprehensive update of M&A activity in some of Latin America’s largest countries, including Argentina, Brazil, Chile, Colombia, Mexico and Peru. We believe this vibrant part of the world will attract higher value M&A agreements in the year to come, due to the strength of the economies in the region.

This issue also includes private equity market updates from other parts of the world. Thank you to our GCA colleagues in Australia, India, the UK and the US for providing these insights.

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Latin America M&A OverviewBy Roberto Perez, Buenos Aires

In the second half of 2012 (2H 2012), there were 189 M&A transactions in Latin America, worth more than US$42.8 billion. This is higher than the first half of 2012, which saw US$25.8 billion worth of transactions (Figure 1). However, it should be noted that to date, 134 of the 189 transactions announced in 2H 2012 have not closed.

According to published reports, more than half the M&A transactions announced in the second half of 2012 involved buyers from Latin American nations. Brazil led the way with 29% of deal numbers (55 deals).The other main buyers from Latin America were Chile, Mexico, Colombia, Peru and Argentina, in that order, followed by Europe with 20% (37 deals) and the US at 15% (28 deals).

Brazil remained the most active location (92 deals in 2H 2012), followed by Chile (24 deals in 2H 2012) and Mexico (18 deals in 2H 2012). Colombia and Peru are also becoming more popular with foreign investors.

M&A activity in Latin America is currently dominated by local businesses, which were involved in 57% of M&A sell-side transactions in 2H 2012. This was a big turnaround from 1H 2012, when the majority of sell-side M&A transactions involved European-based companies.

In 1H 2013, Mexico led the way in M&A investment, according to Transaction Track Record. Eighty-seven transactions totaling more than US$39.2 billion were conducted in Mexico during this period.1 One stands out – the US$20.1 billion purchase of the Mexican beer company Groupo Modelo by AB InBev, a Belgian–Brazilian firm.

Figure 1: M&A transactions in Latin America for the past three half-years, transactions and traded

Due to continued uncertainty in Europe and economic growth in Latin America, local regulators are forcing European banks based in the region to increase their capital base and liquidity. Many banks are doing so by selling subsidiaries and issuing public offerings or debt at a local level. In the past three years, 30% of M&A transactions involving Latin America’s financial sector relate to the sale of subsidiaries by European banks, according to published reports. Local banks have seized on the sale of these financial assets as a way to expand and improve their market positions.

M&A activity down in Q1 2013 According to mergermarket and Merrill DataSite, Q1 2013 M&A in Latin America decreased by 27% compared to Q1 2012, to US$16 billion. Transaction numbers also fell from 160 to 106. Mergermarket and Merrill DataSite believe the decrease was caused by changes to anti-monopoly laws in Brazil and Chile.2

The mergermarket and Merrill DataSite report also found that Latin American M&A moved against the global trend, increasing by 7% to US$418 billion in Q1 2013.

Due to the strong economies of several countries in Latin America, Crowe Horwath believes that the value of M&A agreements will increase throughout the year.

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2H 2011

Traded Number of M&A transactions

25,756

42,838

1H 2012 2H 2012

1 www.ttrecord.com/en/2 http://www.cronista.com/valor/Cambios-en-ley-antimonopolica-reducen-fusiones-y-adquisiciones-en-America-latina-20130506-0004.html

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M&A transactions by country ArgentinaAccording to published reports, M&A transactions in Argentina in 2H 2012 decreased from 14 to 12. This lowered the country’s ranking to sixth place, following Brazil, Chile, Mexico, Colombia and Peru.

M&A activity was strongest in the financial services and energy sectors, totaling 86% of transactions.

Important transactions in 2012 included the:

n acquisition of an 80% share of Standard Bank by ICBC (US$600 million)

n purchase of Esso’s Campana refinery and gas stations by Bridas (US$800 million)

n purchase of HSBC La Buenos Aires Seguros S.A. by the Australian-based QBE Insurance Group for US$420 million. The transaction included the purchase of Hong Kong–based Hang Seng Insurance.

Significant transactions to date in 2013 include:

n Corporación América’s purchase of 81% of Compañía General de Combustibles de Argentina for US$190 million

n Sociedad Argentina de Energía S.A.’s purchase of a share in Edesur by Petrobras Argentina S.A. for US$35 million.

BrazilM&A activity in Latin America has been bolstered by Brazil’s high economic growth rate over the past two years. However, analysts including the International Monetary Fund are concerned that Brazil’s rapid economic growth may lead to uncontrolled inflation and political instability. This concern is being fueled by the country’s current expansionary monetary policy.

Significant transactions in 2012 included:

n Alberti’s purchase of 60% of Obrascon Huarte Lain Brasil S.A. for US$1.2 billion

n United Health’s acquisition of Amil for US$4.9 billion

n Lenovo Group’s purchase of Digibras Participações SA for US$342.6 million

n Ometz Group’s acquisition of Abril Educação S.A. for US$449.4 million.

To date, 2013 has seen several large transactions including:

n Mexico-based Coca Cola Femsa’s acquisition of Spaipa S.A. for US$1.85 billion

n the acquisition by JBS – the world’s largest meat-packing company – of Marfrig-owned Seara Brasil for US$2.7 billion

n Kroton’s acquisition of Anhanguera for US$2.48 billion. If the merger, which is subject to the approval of Brazil’s anti-monopoly authorities, closes, the new group’s market value would approach US$5.85 billion.

ChileChile has become Latin America’s center for M&A activity in the finance and energy sectors. With abundant natural resources, stable political and economic factors, and a relatively high GDP per capita, Chile provides low interest rates and a low public debt risk.

Important M&A transactions in 2012 included:

n Canadian Pension Plan Investment Board’s acquisition of 50% of Grupo Costanera S.A., valued at US$1.1 billion

n Principal Financial Group Inc’s purchase of 63.4% of the Administradora de Fondos de Pensiones Cuprum S.A., valued at US$935 million

n Duke Energy’s purchase of Iberoamericana de Energia S.A. for US$415 million

n MetLife Insurance Company’s purchase of 64% of the Administradora de Fondos de Pensiones Provida S.A.’s interest in Banco Bilbao Vizcaya Argentaria S.A.

In 2013, significant proposals to date include CFR Pharmaceuticals’ offer to purchase South Africa–based Ladcok Ingram for US$1.27 billion. If this sale goes ahead, it will be the largest foreign acquisition by a Chilean company.

ColombiaWith its natural resources sector in its infancy, Colombia is a favorite destination for foreign investors. Crowe Horwath expects to see increasing activity in this sector.

In 2012, M&A activity centered on Colombia’s banking, energy and pharmaceutical sectors. However, the largest M&A transaction occurred in retail, with the purchase of Carrefour Colombia by Chilean-based Cencosud S.A. for US$2.6 billion. Another important deal was the US$1.3 billion purchase of Colombia’s Helm Bank S.A. by Chile’s CorpBanca.

Large 2013 transactions included:

n Nutresa’s acquisition of Chile-based Tresmontes Luccheti for US$603.5 million

n the Colombian Government’s sale of 58% of Isagen Energy for US$2.375 billion, to fund transport infrastructure projects in 2014.

MexicoIn 1H 2013, Mexico led the way in M&A transactions. Concerning cross-border operations during 1H 2013, Mexican companies carried out nine acquisitions overseas, for a total amount of just over US$1.2 billion. In this area, Mexican companies rank third in the region following Brazil and Peru. Foreign countries purchased 20 Mexican companies for a total of more than US$25 billion.

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For more informationRoberto Perez is a Partner at Crowe Horwath in Argentina. He can be reached at +54 11 5918 3706 or [email protected].

According to El Economista, in 1H 2013 Mexico’s financial sector saw the highest rate of M&A activity. The biggest of the 15 transactions carried out was the purchase of ABA Seguros by Swiss-based ACE Group for US$865 million in cash. The seller was Ally Financial (formerly known as GMAC). This activity, which was announced in October 2012 and closed in May 2013, is ACE Group’s second purchase of a Mexican company.

PeruDespite a slight fall in March 2013, Peru’s economy remains the strongest in Latin America. According to El Comercio, M&A acquisitions in Peru are expected to surpass US$8 billion by the end of 2013. Crowe Horwath believes that Peru’s prosperous M&A market will remain buoyant in the year to come.

In 2012, the majority of Peru’s M&A transactions occurred in the construction, mining and retail sectors. Significant transactions included:

n Royal Dutch Shell PLC’s acquisition of several of Repsol’s business investments for US$4.4 billion

n the US$2.5 billion merger of Cementos Lima and Cementos Andina

n Empresas ICA S.A.’s acquisition of 51% of San Martin Contratistas Generales S.A. for US$123 million.

A significant transaction in 2013 was China Fishery Group’s purchase of Copeinca for US$802 million.

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For many private equity investors, 2012 was a disappointing year. In the aftermath of the global financial crisis, deal volumes and values have remained suppressed and a far cry from previous highs. However, there is growing optimism around the latter half of 2013. As Bain & Company has said, “the early harbingers of a private equity revival … are more in evidence this year than they have been since the global financial crisis”.1

In this article, we examine the performance of the private equity market over 2012 and the first half of 2013, and the outlook for the remainder of this year. Data contained in this update was sourced from PitchBook, Capital IQ and the Baird M&A Market Analysis report.

Fundraising and available fundsIn the private equity space, securing funds and achieving competitive returns are critical to long-term success. However, the private equity landscape is changing due to intense competition for limited partner (LP) fundraising. At present, general partners (GP) with a strong track record are securing the most promising LP fundraising commitments.

New and underperforming GPs have found it difficult–if not impossible–to compete for LP fundraising commitments. For example, the number of first-time funds raising capital decreased from a record peak of 27 in 2011 to an all-time low of two over the first half of 2013.

In addition, LP commitments reached US$73.1 billion over the first half of 2013. This represents around 80% and 66% of the total fundraising commitments made during 2011 and 2012, respectively.

US Private Equity Market UpdateBy Marc Shaffer, Chicago, and Robert Kollar, Atlanta

LP commitments are also concentrated among fewer GPs, with successful GPs raising larger funds with each fundraising event (see table above). The number of new mega-funds (in excess of US$5 billion) increased from two during 2012 to five during the first half of 2013.

Fundraising volumes increased over the last six quarters, and the number of fund closures remains at historically low levels. For instance, quarterly fund closures averaged only 32 during 2012, and 29.5 in the first half of 2013.

A driving factor behind low fund closure figures is the presence of ‘dry powder’ – or committed but not yet invested funding. While capital reserves have declined since the global financial crisis, GPs held US$328.4 billion worth of dry powder in 2012. GPs must choose to invest these funds or return them to investors.

In this environment, many GPs have chosen to invest in add-ons to existing portfolio companies to maximize returns. GPs often grow portfolio companies by acquiring smaller companies within the same industry. As a result, add-ons currently account for a significant portion of US deal flow. For example, add-ons were popular over the last two years, representing 48% of total buyouts in 2012 and 51% over the first six months of 2013.

SectorsThe business-to-consumer and materials and resources sectors were the only sectors where deal volume and capital investments increased in the first half of 2013 compared to 2012. For example, over this period, B2C deal volumes rose by 2.5% and capital investments increased by 82.3%; while in the materials and resources sector, deal volumes rose by 13.5% and capital investments increased by 12.1%.

Deal metricsOverall, deal flows declined considerably between 2011 and the first half of 2013.

During 2012, capital investment fell by $15.6 billion or 4.2%. On an annualized basis, capital investment fell by $77.1 billion or 21.6% during the first six months of 2013. Furthermore, the number of completed deals decreased by 61 (2.7%) in 2012, and 695 (32.0%) over the first half of 2013.

From 2012 to July 2013, average deal sizes increased from US$16.5 million to US$19.1 million. During 2013, capital investment totals have been boosted by 3G Capital and Berkshire Hathaway, Inc’s US$23.2 billion buyout of H.J. Heinz and Company.

2012–full year (% increase over previous period)

2013–six months to 30 June (% increase

over previous period)

Average step-up in fund size increase

US$316.6 million (56.4%)

US$538.7 million (77.7%)

Average fund size increase

US$130.6 million (17.5%)

US$353.4 million (40.3%)

1 Bain & Company, Inc., ‘Global Private Equity Report 2013’, resultsbrief.bain.com/pdfs/Bain_and_Company_Global_Private_Equity_Report_2013_public.pdf

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The fourth quarter of 2012 saw significantly more deal activity than the rest of that year. For instance, approximately 39.4% of capital investment and 30.9% of completed deals took place in Q4. We are waiting to see if Q4 2013 will see a similar spike in market activity.

Over the past two years, the majority of deals closed were below US$100 million. In 2012, the figure was 68.8%, and 64.6% for the first half of 2013. However, the dollar value of these deals represented only 12.0% and 9.9%, respectively, of total investments made during these periods.

Furthermore, the median EBITDA transaction multiple for all deal sizes increased from 5.0 times to 6.1 times between Q2 2012 to Q2 2013. The middle market (up to US$1 billion) median EBITDA transaction multiple increased from 8.1 times to 8.5 times from 31 July 2012 to 31 July 2013.

Notable acquisitionsIn 2012, eight private equity–related deals worth more than US$2.5 billion were completed. In the first half of 2013, the following deals were completed by US private equity funds:

n 3G Capital and Berkshire Hathaway, Inc. acquired H.J. Heinz and Company for US$23.2 billion.

n The Carlyle Group LP acquired Axalta Coating Systems for US$5.2 billion.

n Kinder Morgan Energy Partners, LP acquired Copano Energy LLC for US$4.5 billion.

n Apollo Global Management, LLC acquired McGraw-Hill Education, Inc. for US$2.6 billion.

n Bain Capital Private Equity acquired Apex Tool Group, LLC for US$1.6 billion.

Fund performanceNet cash flows (distributions less contributions) for private equity funds increased from US$15.9 billion in 2011 and US$56.3 billion in 2012.

Funds raised during the mid-2000s included transactions executed at various heights of the financial bubble. As such, many GPs have elected to hold such portfolio companies for longer periods to achieve acceptable internal rates of return (IRR). The median IRR reported for vintage 2010 funds was 7.9%, while the top and bottom quartiles achieved IRRs of 17.3% and 1.1%, respectively.

OutlookDespite a disappointing first half of 2013 in terms of deal volumes and values, fundraising levels are on course to reach a five-year high by the end of 2013.Given current fundraising rates – and the need for funds to deploy dry powder – we are optimistic about the final half of 2013.

For more informationMarc Shaffer is Financial Advisory Services Leader for Crowe Horwath in Chicago. He can be reached on +1 312 857 7512 or [email protected].

Robert Kollar is a Transaction Services Senior Manager for Crowe Horwath in Atlanta. He can be reached on +1 404 442 1603 or [email protected]

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A double-dip recession, Summer Olympic hibernation and uncertainty in the eurozone led to a decline in investment activity in the UK in 2012 (Figure 1).

The contest for M&A deals remains between private equity firms looking to acquire targets and corporate acquirers. The latter won the battle for deals in 2012.

However, early signs in 2013 suggest that private equity activity is recovering. Even so, it still lags behind business-to-business transactions. Private equity transactions also rely on management teams actively seeking to effect change – which is more likely in a buoyant market where they have alternatives, should a buyout fail.

United Kingdom Private Equity UpdateBy Peter Varley, London

UK capital markets are experiencing a resurgence in 2013, with private equity firms seeing IPOs as a viable alternative to realize investments. H1 2013 saw four major private equity–led IPOs on the UK market, topped by Cinven’s £1.8 billion float of Partnership Assurance; and Electra Partners and Penta Capital’s £1.4 billion float of Esure Insurance.

Key trends in 2012In 2012, corporate buyers paid higher multiples than private equity, suggesting that the strategic premium paid by trade acquirers may be outweighing the scarcity premium for private equity–led transactions, driven by a shortage of businesses matching private equity criteria. This trend suggests that the private equity community is struggling to deploy its overhang of funds.

While private equity exits benefited from the activity of corporate buyers, some private equity firms still have a large number of assets in their portfolios that have passed the traditional private equity hold time period.

Despite early signs that the public markets are offering a viable exit strategy, strategic/corporate buyers and other private equity firms remain the most likely and most viable exit options for the foreseeable future. Limited exit activity suggests there are several private equity firms that are ‘stuck’, having exhausted their gains from restructuring.

As a direct result of corporate activity, secondary buyouts fell away in 2012 following highs in 2010 and 2011 when private equity houses turned to one another to originate and realize investments.

Early stage deal volumes also increased as investors flocked to the increasingly popular technology sector. This sector is flourishing thanks to a host of public and private initiatives encouraging innovation.

Despite an abundance of opportunities, private equity firms remain skeptical of pursuing public-to-private opportunities, put off by the potentially high transaction costs and public nature of the offer process.

Funds raisedFundraising in 2012 increased to £6 billion compared to £4.5 billion in 2011. Increased fundraising by the large buyout funds masked declining trends for the smaller funds (Figure 2).

Figure 1: UK private equity deal volume and value, 2008–12. Data refers to private equity-led investments in UK companies only. It does not consider overseas investments or non-private equity deals. In this article, ‘deal value’ refers to the amount invested by the private equity firm and not the enterprise value of the deal.Source: British Venture Capital Association

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2008 2009 2010 2011 2012

Deal value (£’m) Deal volume

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In 2012, about £1.6 billion of total funds raised came from overseas sources (Figure 3). This is a continuation of a declining trend, which is partly caused by reduced appetite for the asset class by overseas pension funds.

DivestmentsPrivate equity firms continue to see returns via traditional methods – with repayment of preference shares and similar leverage instruments representing about 10% of the ‘exit’ value achieved by private equity firms on UK deals in 2012 (Figure 4).

Trade sales, secondary buyouts and IPOs (or post-IPO sales) represented the significant majority of UK private equity exits in 2012.

IPO as a strategy for exit was used less (in terms of deal volume) in 2012 compared to the prior year. However, IPO activity was generally weak in both periods.

Sector analysisOverall deal volumes and values remain below the peak levels experienced in 2008 (Figure 5). The strongest performing sectors included industrials, health care, consumer services, financial services and IT.

The industrials sector includes construction and materials, aerospace and defense, general industrial products, electronic and electrical equipment, industrial engineering and associated support services. In 2012, a recovery in international demand for UK products has contributed to slightly increased volume and higher value deals (Figure 6).

Fund type 2012 (£ million) 2011 (£ million) 2010 (£ million)

Large MBO 3,634 – –

Middle MBO 1,170 2,784 4,589

Small MBO 722 820 1,218

Venture capital 428 882 478

Generalist 19 50 199

Development – 8 65

Early – – 46

Total 5,973 4,544 6,595

Figure 2: Funds raised by focus, 2010–12Source: British Venture Capital Association

Figure 3: Funds raised by geography, 2010–12Source: British Venture Capital Association

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2010 2011 2012

2011 2012

Value (£ million)

Number of exits

Value (£ million)

Number of exits

IPO 219 10 297 5

Repayment of preferences/loans 1,512 218 776 216

Sale of quoted equity post flotation 662 70 1,319 95

Sale to another private equity firm 2,249 83 1,314 70

Sale to financial institution 771 137 278 25

Sale to management 274 46 82 48

Trade sale 2,561 188 2,516 149

Write offs 3,276 88 267 54

Others 372 74 392 102

Total 11,896 914 7,241 764

Figure 4: Private equity exits by route, 2011–12Source: British Venture Capital Association

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Figure 5: UK private equity sector investment summary, 2008–12Source: British Venture Capital Association

The healthcare sector (including health care equipment and services, pharmaceuticals and biotech) also performed well, despite macro-economic pressures driven by the UK Government’s austerity measures in the sector (Figure 5). Demand for health care assets remains buoyant and those assets are expected to remain a target for private equity firms looking to capitalize on significant changes in the UK healthcare market.

Consumer services including food, retail, media, travel and leisure did not fare well in 2012, with the recession hitting retailers particularly hard (Figure 5). Despite deal volumes looking stable, overall value is significantly depressed as growth becomes a lesser constituent of deal multiples, and deal data includes more distressed asset acquisitions.

Private equity investment activity in Britain’s financial sector is also waning. Following the brief rally in 2010 related to regulatory changes, private equity investment in this sector has shown year-on-year decline (Figure 5).

Number of companies Amount invested (£ million)

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

Industrials 246 146 163 151 160 2,464 950 1,073 1,039 1,448

Healthcare 234 142 139 168 161 1,294 310 1,168 849 1,199

Consumer services 189 128 120 109 116 1,856 758 2,445 1,494 921

Financials 73 27 43 39 36 913 484 1,193 922 870

Consumer goods 66 44 54 55 57 336 616 640 704 411

Technology 355 216 219 199 199 517 959 1,019 927 410

Telecommunications 30 22 15 17 13 40 21 146 143 286

Oil and gas 53 27 40 32 42 983 522 234 226 160

Utilities 5 14 10 7 8 77 42 264 24 31

Other – 7 5 2 7 – 68 49 1 24

Basic materials 27 18 15 22 21 76 58 6 46 8

Total 1,278 791 823 801 820 8,556 4,788 8,237 6,375 5,768

On a positive note, the technology sector saw overall deal volume remain steady, despite deal values falling. Crowe Horwath notes that the UK private equity market has become cautious of technology investment following significant and well-publicized write-downs. High activity levels in early stage investments accounted for the stable deal volume and decreased deal values as demand for innovative software assets strengthened.

Fund performanceFigure 6 summarizes the internal rates of return since inception (SI-IRR) reported by fund category in the UK, measured from the start of the funds’ investment (the first drawdown), up to a particular point in time. It excludes funds that are not at least four years old (and therefore not yet mature).

From inception to 31 December 2012, fund performance stood at 13.9% internal rates of return per annum. 2012’s inception performance is marginally lower than 2011’s. However, it is broadly comparable to the last decade, demonstrating the consistency of the performance of the asset class over time.

OutlookThere is increasing confidence in the UK market, driven by the availability of ‘cheap’ debt and an improving economic outlook, which is expected to contribute to a steady recovery in deal volumes.

Overall, Crowe Horwath characterizes the UK market outlook as one of cautious optimism and we believe it offers investors relative safety compared to the eurozone. As such, we are hopeful of an increase in overseas funding.

With more private equity firms seeing IPOs as a viable alternative to realize investments, we expect to see an increasing number of firms taking advantage of current market sentiment, particularly in the upper mid-market.

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Figure 6: Internal rates of return since inception (SI-IRR) as a percentageSource: British Venture Capital Association

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% % % % % % % % % % % % %

Pre-1996 vintage funds

Early stage 24 9.2 9.2 9.2 9.2 9.2 9.2 9.3 8.8 8.9 8.9 9.0 9.1

Development 35 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.0 10.0 10.0 10.1 10.1

Mid MBO 33 15.8 15.8 15.8 15.7 15.8 15.8 15.8 15.8 15.9 15.9 15.9 16.0

Large MBO 26 18.2 18.2 18.2 18.2 18.2 18.2 18.2 18.2 18.1 18.1 18.2 18.1

Generalist 35 15.8 15.8 15.8 15.8 15.8 15.8 15.6 15.6 15.5 15.6 15.6 15.8

Subtotal pre-1996 153 15.6 15.6 15.6 15.6 15.6 15.6 15.5 15.5 15.5 15.5 15.5 15.5

1996 vintage funds onwards

Venture 98 0.4 0.9 (0.3) (2.2) (1.8) (1.6) (0.6) (1.9) (2.4) 8.7 29.7 42.0

Pre-2002 vintage funds 43 (2.6) (1.3) (1.6) (3.1) (2.6) n/a n/a n/a n/a n/a n/a n/a

2002 vintage funds onwards

55 3.6 4.0 2.2 0.2 1.7 n/a n/a n/a n/a n/a n/a n/a

Small MBO 32 16.0 15.3 17.9 17.3 6.5 7.3 3.2 1.9 0.3 3.2 1.3 2.6

Mid MBO 126 12.3 12.5 13.2 14.0 14.9 14.9 13.2 9.3 5.9 4.3 3.6 8.0

Large MBO 45 14.7 15.4 17.8 19.2 21.5 23.7 21.0 18.0 13.9 14.3 16.5 30.6

Subtotal 1996 onwards 301 13.1 13.6 15.2 16.1 17.2 18.9 16.4 13.2 9.4 9.7 11.7 19.8

Grand total all funds 454 13.9 14.3 15.3 15.9 16.4 17.3 16.0 14.4 13.0 13.6 14.6 16.2

Subcategories (all vintages) UK

UK 318 13.5 13.6 13.9 14.1 14.6 14.6 14.4 14.0 13.6 14.1 14.5 15.4

Non-UK 136 14.2 14.7 16.6 17.7 18.5 20.2 17.9 14.9 11.8 12.6 15.1 18.7

Pan-European 130 15.6 16.3 18.0 19.3 20.3 21.6 19.7 17.4 14.0 14.9 16.9 20.9

Technology 115 1.1 1.5 0.6 (0.9) (0.6) (0.1) 1.0 0.1 0.9 7.4 10.7 12.1

Non-technology 339 14.9 15.3 16.4 17.0 17.8 18.7 17.3 15.7 14.2 14.5 15.3 17.0

For more informationPeter Varley is the Chairman of GCA and the Lead Partner of the London Corporate Finance Team at Crowe Clark Whitehill LLP. He can be reached at +44 (0)20 7842 7353 or [email protected].

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Australian Private Equity UpdateBy Dan Cotton, Sydney

According to IESE Business School, Australia is the sixth most attractive country worldwide for private equity and venture capital investors.1

Private equity is playing a bigger part in the Australian economy. Research published at the annual Australian Private Equity & Venture Capital Association Limited (AVCAL) conference in September 2013 revealed that:

n 262,000 people are directly employed by private equity–backed businesses in Australia.

n There are 500 private equity and venture capital–backed businesses in Australia, which support more jobs than the auto or banking industries and generate more revenue than the coal mining or general insurance industries.

n Each year, A$59 billion in value is added to Australia’s gross domestic product by private equity and venture capital–backed businesses.

Despite the expanded role of private equity in Australia’s economy, the country’s M&A market remains slow.

M&A market The year ending 30 June 2013 (FY13) continued the trend from FY12. The total number of M&A deals in Australia decreased by 6%, while total deals by value decreased significantly by 43% from the previous year. This was primarily driven by a decrease in activity at both the larger and smaller ends of the M&A market, while middle-market deals remained steady.

FY09 FY10 FY11 FY12 FY13 Australia 5 3 5 6 5

New Zealand 11 9 6 7 6

UK 12 13 12 13 14

US 14 13 13 13 14

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Number of PE transactions as a % of total transactions

Figure 1: Number of private equity transactions as a percentage of total transactions, FY 09–13Source: AVCAL Market Observations, September 2013

FY09 FY10 FY11 FY12 FY13 Australia 3 3 11 7 9

New Zealand 2 24 8 4 3

UK 23 15 13 14 17

US 9 9 16 15 23

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Value of PE transactions as a % of total transactions

Figure 2: Value of private equity transactions as a percentage of total transactions, FY09–13Source: AVCAL Market Observations, September 2013

Within this subdued Australian M&A market, the portion of overall transactions attributable to private equity fell by 1 point to 5% in FY13. However, private equity transaction values increased to 9% of total transaction values in FY13. This suggests that Australia’s private equity houses were more selective and focused on the higher-value end of the spectrum.

Regardless of this increase, the contribution to total M&A deals by private equity in Australia, as in New Zealand, remains significantly lower compared to the UK and US markets (Figure 1).

1 The Global Venture Capital and Private Equity Country Attractiveness Index, IESE Business School, 2012, see www.avcal.com.au/documents/item/567.

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Fundraising and available funds for investmentGrowth private equity funds have traditionally raised capital primarily from domestic investors. However, more recently there has been an increasing inflow of international capital.

According to AVCAL, private equity firms raised A$3.3 billion of funds in the year ending 30 June 2012 (FY12), the largest fundraising effort for five years (Figure 3). Notable fund raisings in the past few years include Quadrant Private Equity (A$750 million in 2010), CHAMP Ventures (A$475 million in 2012) and Archer Capital (A$1.5 billion in 2012).

Venture Capital Private Equity Total

Year Amount (A$m)

No. of Funds

Raising Capital

Amount (A$m)

No. of Funds

Raising Capital

Amount (A$m)

No. of Funds

Raising Capital

FY03 161.82 5 391.30 5 553.12 10

FY04 96.09 5 1,631.11 5 1,727.20 10

FY05 349.87 6 1,496.35 19 1,846.21 25

FY06 120.60 4 4,092.69 15 4,213.29 19

FY07 356.92 4 8,690.04 20 9,046.96 24

FY08 313.40 5 1,817.74 16 2,131.14 21

FY09 174.89 9 1,485.21 17 1,660.10 26

FY10 158.00 13 1,207.92 10 1,365.92 23

FY11 80.00 2 2,014.79 10 2,094.79 12

FY12 240.02 4 3,094.74 17 3,334.76 21

Figure 3: Venture capital and private equity funds raising capital, FY03–12Source: AVCAL Market Observations, September 2013

Major areas of investment – energy and IT sectorsAccording to Capital IQ, the majority of transaction volumes by value in 2012 occurred in the energy and IT sectors.

Notable transactions include the acquisition of Spotless Group (provider of integrated facility management) by Pacific Equity Partners for A$1 billion, and CHAMP Private Equity’s partial acquisition of assets from Transocean (provider of offshore contract drilling services for oil and gas wells worldwide) for A$1 billion.

The IT sector continues to drive a significant portion of the private equity deal market by number of transactions. The average reported IT deal size in FY13 was A$22 million. Archer Capital was active in larger IT deals (Figure 4). For example, it led the consortium

that bought a majority stake in MYOB Limited for A$448 million in 2008. Archer Capital sold MYOB to Bain Capital for A$1.2 billion in 2011.

Average enterprise value/EBITDA multiples for reported transactions in FY13 was 8 times. This was significantly lower than the reported 10.5 times in FY12. However, this data may be skewed due to smaller-scale deals with fewer reported multiples during the period.

Acquisitions In the past five years there have been several completed deals valued over A$1 billion that involved private equity or venture capital firms. The largest involved a consortium of investors acquiring Puget Energy completed in June 2009 for A$7.4 billion with an implied EBITDA multiple of 9.4 times.

Notable pure private equity deals include Pacific Equity Partners’ acquisitions of Spotless Group in FY12 for A$1 billion in 2012 and Energy Developments for A$819 million in FY10.

Fund performanceThe Cambridge Associates LLC Australian Private Equity & Venture Capital Index (the CA Australia Index) showed an 11.6% three-year return as at 31 March 2013, 7.3% over five years, 13.8% over 10 years and 14.4% over 15 years. The index has outperformed the Asian Developed Economy Private Equity and Venture Capital Index over every one of those timescales (Figure 6).

The most recent CA Australia Index shows that Australian private equity houses have outperformed the S&P/ASX 300 Index over the past single-quarter, three-year, five-year and 15-year periods. However, it has underperformed the same index for the one-year and 10-year periods (Figure 6).

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Industry Transaction Volume (#) Transaction Volume ($m)

FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14

Consumer Discretionary 12 19 21 19 23 1 282 553 2,788 4,366 1,159 93

Consumer Staples 9 8 8 9 6 2 536 764 608 2,488 1,072 70

Energy 8 11 6 10 11 – 6,251 3,675 3,096 225 2,433 –

Financials 11 11 5 18 9 4 488 289 75 2,344 457 280

Healthcare 32 24 18 19 20 2 811 651 1,859 1,397 767 –

Industrials 22 21 27 19 20 – 417 3,818 9,903 3,254 2,041 –

Information Technology 21 29 28 46 37 – 789 200 1,158 3,615 601 –

Materials 24 17 35 29 20 3 395 260 2,936 1,710 1,258 198

Other – – 3 4 6 1 – – 3,105 730 23 –

Telecommunication Services 2 1 1 2 3 – 5 – – 66 3 –

Utilities 4 3 1 4 4 1 7,399 1,974 49 2 233 –

Total 145 144 153 179 159 14 17,374 12,182 25,576 20,197 10,046 641

Industry Average Transaction Value (A$m) Average Implied Enterprise Value/EBITDA (x)

FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14

Consumer Discretionary 40 55 232 336 89 93 n/a n/a 8.4 9.4 6.0 n/a

Consumer Staples 134 255 152 415 357 70 13 10.9 9.4 22 7 n/a

Energy 893 408 516 38 270 n/a n/a 8 17 n/a 9.6 n/a

Financials 81 36 19 180 65 93 n/a n/a n/a 8 4.0 n/a

Healthcare 28 34 116 87 55 n/a 19 n/a 8 n/a n/a n/a

Industrials 32 318 660 271 204 n/a 5 7.4 10.7 18.5 11.6 n/a

Information Technology 42 14 55 110 22 n/a 5.2 3 9.4 11 6 n/a

Materials 18 17 95 63 70 99 n/a 7 9 7 11 n/a

Other n/a n/a 1,035 243 5 n/a n/a n/a n/a n/a 1 n/a

Telecommunication Services 2 n/a n/a 33 2 n/a n/a n/a n/a 3 n/a n/a

Utilities 2,466 658 49 2 78 n/a 9 7 n/a n/a n/a n/a

Total 155 131 226 153 91 92 10.8 7.8 9.7 10.5 8.0 n/a

Figure 4: Transaction volume by industry in Australia, FY09–14Source: Capital IQ, September 2013

OutlookFor the remainder of 2013, Australia’s private equity market will be characterized by variable levels and availability of debt to finance deals, and fewer growth funds as several funds have pulled out of the market.

We expect that the greatest returns will increasingly come from businesses involved in industry niches or from

greater exposure to offshore growth options.

For example, there are now more than 30 million Chinese households with incomes greater than US$30,000. Australian companies that provide products to this growing middle-class demographic are proving attractive to global and local investors. Australia is also attracting private equity interest due to its potential to supply Asian

consumers – whose tastes are shifting towards higher protein foods – with fresh, high-quality food.

We also believe that good returns will come from a stronger focus on value creation in the investee business and operational improvement (over multiple arbitrage or high leverage). Such funds are positioned to drive world-leading returns. The outlook is cautiously positive.

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Date Target Buyers Sellers Primary Sector

Txn Value (A$m)

Implied EV/

EBITDA (x)

22/08/2013 City Farmers Retail Pty Ltd Quadrant Private Equity Pty Limited

– Consumer Discretionary

93.0 n/d

09/08/2013 Guardian Early Learning Group Pty Ltd

Wolseley Partners Pty Ltd Navis Capital Partners Education Services

120.0 n/d

23/04/2013 Miclyn Express Offshore Limited (ASX:MIO)

CHAMP Private Equity; SEA6 Limited

– Energy 99.1 10.33

15/04/2013 EnviroWaste Services Limited

Cheung Kong Infrastructure Holdings Ltd. (SEHK:1038)

Ironbridge Capital Pty Ltd Industrials 398.0 10.0

31/03/2013 Allity Archer Capital Pty Ltd. Lend Lease Group (ASX:LLC) Healthcare 270.0 n/d

28/03/2013 Electrical Distributors Australia Pty. Ltd., Inc.

McPherson's Consumer Products Pty Ltd.

Anacacia Capital Pty Limited Consumer Discretionary

22.7 5.02

04/02/2013 Locker Group Pty. Ltd. Valmont Industries, Inc. (NYSE:VMI)

Advent Private Capital Pty Ltd Materials 61.2 n/d

30/11/2012 Transocean Ltd., 37 Standard Jackups, One Swamp Barge and Associated Operations

CHAMP Private Equity; Castle Harlan, Inc.; Lime Rock Partners

Transocean Ltd. (NYSE:RIG) Energy 1,013.2 n/d

23/10/2012 Gerard Lighting Group Limited

CHAMP Private Equity AMP Capital Investors Limited; Colonial First State Investments Limited; Perennial Investment Partners Limited; K2 Asset Management Holdings Ltd (ASX:KAM); Gerard Lighting Investments No 2 Pty Limited; Gerard Lighting Investments No 1 Pty Limited

Industrials 287.2 6.96

22/10/2012 Miclyn Express Offshore Limited (ASX:MIO)

CHAMP Private Equity Macquarie Capital Group Limited Energy 207.9 8.83

05/10/2012 ClearView Wealth Limited (ASX:CVW)

Crescent Capital Partners Management Pty Ltd.

Ariadne Australia Limited (ASX:ARA); Guinness Peat Group plc (LSE:GPG); Investec Asset Management Limited; Investec Wentworth Private Equity Limited; Macquarie Investment Management Limited; Investec Bank (Australia) Limited; Paradice Investment Management Pty Ltd.; Allan Gray Australia Pty Ltd

Financials 347.3 3.95

02/10/2012 Witchery Australia Holdings Pty Limited

Country Road Ltd. (ASX:CTY) Gresham Private Equity Limited Consumer Discretionary

180.9 5.32

17/08/2012 Spotless Group Ltd. Pacific Equity Partners AlpInvest Partners B.V.; Lazard Asset Management Pacific Co.; First Eagle Investment Management, LLC; Investors Mutual Limited; Maple-Brown Abbott Limited; International Value Advisers, LLC; Allan Gray Australia Pty Ltd; Pacific Industrial Services Pty Limited

Industrials 1,025.5 5.97

30/10/2011 Rebel Group Limited Super Retail Group Limited (ASX:SUL)

Archer Capital Pty Ltd. Consumer Discretionary

624.9 8.06

05/10/2011 ConnectEast Pty Ltd. CP2 Group Limited – Industrials 2,663.2 23.7

19/08/2011 MYOB Holdings Pty Limited Bain Capital Private Equity Archer Capital Pty Ltd.; HarbourVest Partners, LLC

Information Technology

1,200.0 n/d

13/06/2011 Quick Service Restaurants Inc.

Archer Capital Pty Ltd. Quadrant Private Equity Pty Limited Consumer Discretionary

450.0 n/d

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Date Target Buyers Sellers Primary Sector

Txn Value (A$m)

Implied EV/

EBITDA (x)

10/05/2011 Queensland Motorways Pty Limited

QIC Global Infrastructure Queensland (State of) Industrials 3,088.0 n/d

29/03/2011 Alinta Finance Australia Pty Limited, Certain Assets

Oaktree Capital Management, L.P.; TPG Capital, L.P.; Anchorage Capital Partners

Alinta Finance Australia Pty Limited Other 3,075.0 n/d

23/12/2010 SecurePay Pty. Ltd. Australian Postal Corporation Advent Private Capital Pty Ltd Information Technology

49.3 n/d

20/12/2010 Healthcare Australia Pty Ltd. Healthcare Locums Plc CHAMP Private Equity Healthcare 131.2 7.63

30/11/2010 Port of Brisbane Corp. QIC Limited; Industry Funds Management Pty Ltd.; Global Infrastructure Partners; Tawreed Investments Ltd.

– Industrials 2,834.7 16.27

30/09/2010 Acrow Formwork and Scaffolding Pty Limited

Anchorage Capital Partners Boral Limited (ASX:BLD) Industrials 35.0 n/d

29/06/2010 Air Lease Corporation (NYSE:AL)

SG Capital Developpement SA; Colonial First State Private Equity

– Industrials 1,288.9 n/d

24/06/2010 Société des Autoroutes Paris-Rhin-Rhône

Eiffage SA (ENXTPA:FGR); Macquarie Atlas Roads Group (ASX:MQA); Macquarie Infrastructure and Real Assets (Europe) Limited

Elliott Management Corporation; Sandell Asset Management Corp.; Cypress Holding AB

Industrials 1,215.3 10.49

Figure 5: Significant deals in Australia between 2010 and 2013Source: Capital IQ, September 2013

As at 31 March 2013 1Q 1 Yr 3 Yr 5 Yr 10 Yr 15 Yr

Cambridge Associates LLC Australia Private Equity & Venture Capital Index (A$) 2.36 6.72 7.18 3.71 8.37 8.99

Cambridge Associates LLC Australia Private Equity & Venture Capital Index (US$) 2.79 7.42 11.60 7.31 13.76 14.38

S&P/ASX 300 Index 8.04 19.15 5.04 2.92 10.21 8.57

S&P/ASX Small Ordinaries Index 1.61 (5.82) (0.77) (3.48) 8.56 5.34

UBS Australia Bank Bill Index 0.72 3.58 4.44 4.71 5.32 5.30

UBS Australian Composite Bond Index 0.14 7.03 7.95 7.82 6.27 6.33

Information Technology 789 200 1,158 3,615 601 –

Materials 395 260 2,936 1,710 1,258 198

Figure 6: CA Australia Index compared with other benchmarksSource: Cambridge Associates LLC, Australia Private Equity & Venture Capital Index and Selected Benchmark Statistics, 31 March 2013

For more informationDan Cotton is a Lead Principal of Corporate Finance at Crowe Horwath in Sydney, Australia. He can be reached at +61 2 9619 1714 or [email protected].

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Navigating Choppy Waters: The Outlook for India’s Private Equity MarketBy Sanjay Bansal, New Delhi

India’s uncertain economic outlook, including a major decline in the rupee, has prompted a change of tack among private equity firms. At present, private equity funds are delaying their exits to recoup their initial investments – let alone turn a profit. In this article, we examine the recent performance of India’s private equity market and its outlook for the future.

Fundraising and available fundsWhile India’s economic growth is at its lowest level since 2009, activity in the nation’s private equity market continues apace. According to mid-market investment bank Aurum, in the first half of 2013, 204 private equity deals were completed worth a total of US$6 billion. In comparison, during 2012, 400 deals were closed worth a combined US$7 billion.

Between 2010 and 2012, average deal sizes declined from US$25 million to US$18 million, reflecting an absence of large-scale transactions. Over the first six months of 2013 a number of large-scale private equity deals have been closed, particularly in the IT sector.

Fund performanceIndia’s current economic uncertainty is making it difficult for many private equity funds to exit their investments. For example, the rupee’s decline eroded the US$ value of private equity investments made in the past, which makes it more difficult to sell out of investments at a profit.1

“In dollar terms, almost every investor is down 30% to 40% [since 2008],” Nikhil Raghavan, principal at private equity firm Bain Capital LLC in Mumbai, told The Wall Street Journal in July 2013.

According to investment banking sources, private equity investments in some 630 companies are more than four years old – typically longer than most funds would like to remain invested.2 Of the US$50 billion invested by private equity companies in India over the past 10 years, only US$16 billion has been returned, according to private equity research firm VCC Edge.

In this difficult environment, private equity funds have also tempered investors’ expectations. Previous goals of investment returns of around 25% have been scaled back to 16%–18%, and some fund managers are seeking to extend their tenure to hold investors’ funds longer in anticipation of an economic turnaround in two years.3

However, some private equity investors have made profits in 2013. For instance, a unit of US private equity firm TPG Capital sold 10% stakes in Shriram Transport Finance Co., an Indian commercial-vehicle lender, in February and May. The company said it achieved a return of 6.5 times its initial investment in rupee terms.4

Deal metrics by sectorSince 2005, private equity investments across sectors have varied markedly. The standout performers have been emerging sectors (such as IT and pharmaceuticals) at the expense of traditional sectors including infrastructure, power and real estate.

All of the figures below are drawn from Aurum’s Private Equity Landscape report, published in September 2013.

Banking and financial servicesIn 2007, over US$3.2 billion was invested by private equity firms in banking and financial services companies. Following the global financial crisis, investment levels have remained well below the US$1 billion mark. For example, in 2012, 45 deals were completed worth a total of US$687 million.

In the first half of 2013, major private equity deals included:

n Heliconia Pte Ltd’s plans to acquire 2.6% stake in Kotak Mahindra Bank for US$238 million

n Ratnakar Bank raised US$60 million from a clutch of investors including International Finance Corp.

EducationThe education sector appears to have largely bucked the effects of the GFC. For example, the number of private equity deals increased from one deal worth US$8 million in 2006, to 24 deals worth US$147 million in 2011. In 2012, the value of deals in the sector more than halved to US$59 million, while the number of deals declined slightly to 17.

In 2012, one of the largest deals was New Silk Route Partners’ investment of US$30 million in Varsity Education for a minority stake.

1 Machado, K., ‘Tide Turns for Private Equity in India,’ The Wall Street Journal, 24 July 2013, blogs.wsj.com/moneybeat/2013/07/24/tide-turns-against-private-equity-in-india/tab/print.2 Sachitanand, R. and Shah, S., ‘PE investments in 630 companies waiting in exit queue but bleak economy and muted stock markets spoil plans,’ The Economic Times, 12 August 2013,

articles.economictimes.indiatimes.com/2013-08-12/news/41333020_1_pe-fund-pe-investments-pe-industry.3 Shah, S., ‘Slowdown-hit private equity funds defer $1 billion investment plans,’ The Economic Times, 1 August 2013, articles.economictimes.indiatimes.com/2013-08-01/news/40962932_1_

india-value-fund-avigo-capital-aavishkaar.4 Machado, K., ‘Tide Turns for Private Equity in India,’ The Wall Street Journal, 24 July 2013, blogs.wsj.com/moneybeat/2013/07/24/tide-turns-against-private-equity-in-india/tab/print.

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Fast-moving consumer goods (FMCG), food and beveragesPrivate equity investments in FMCG companies have increased substantially over the past seven years. In 2012, 13 deals were closed worth US$338 million – an increase over the nine deals in 2006 valued at US$154 million. Furthermore, average deal sizes more than doubled to US$26 million in 2012 compared with 2011.

In the first six months of 2013, key private equity transactions included:

n Temasek Holdings’ investment of US$137 million in Godrej Consumer Products

n Carlyle Group and TPG Group’s purchase of a minority stake in Allied Blenders and Distillers Ltd for US$100 million

n ChrysCapital Investment Advisors’ US$45 million investment in Cavinkare Pvt Ltd.

Information technologyIn recent years, private equity activity in the IT sector has moved back towards its pre-GFC highs. In 2012, 68 deals were completed worth nearly US$1.3 billion – the third consecutive year of increases for private equity deal volumes and total value. In addition, average deal sizes have remained consistent at US$19 million in 2011 and 2012.

In the first half of 2013, private equity deal values already exceed values for 2012. These deals included:

n Baring Private Equity’s acquisition of a 42% stake in Hexaware Technologies for US$400 million

n Partners Group’s acquisition of a majority stake in CSS Corp Pvt Ltd for US$270 million.

Pharmaceuticals, healthcare and biotechPrivate equity funds have been highly active in this sector in recent years. In 2012, funds completed 38 deals worth US$856 million. This was a substantial increase over the 18 deals closed worth US$261 million in 2011. Average deal sizes in the sector increased from US$10 million in 2009 to US$23 million in 2012.

In the first half of 2013, key private equity transactions included:

n Apax Partner’s equity stake sale of Apollo Hospitals to Oppenheimer Funds for US$97 million

n Fortis Healthcare raising US$45 million from International Finance Corporation

n TA Associates and Westbridge Capital’s US$44 million investment in Dr. Lal Pathlabs.

Power, energy and infrastructureIn 2012, 24 deals were completed in this sector worth a total of US$686 million. This is a far cry from the 44 deals closed in 2007 worth close to US$4 billion. In addition, average deal sizes fell from US$52 million in 2011 to US$29 million in 2012.

In the first half of 2013, the major private equity deals included:

n Goldman Sachs’ investment of US$135 million in ReNew Windpower

n GE Energy’s US$40 million investment in Gati Infrastructure’s Hydro-Electric Power project.

Real estateInvestment in this sector has plateaued in recent years. In 2012, US$715 million was invested by private equity investors, which was only marginally more than the US$649 million invested in 2006. Average deal values have also nearly halved from US$50 million in 2011 to US$29 million in 2012.

In the first six months of 2013, major private equity deals included:

n Qatar Fund QIA’s US$300 million investment in RMZ Corp

n Blackstone and Embassy Group’s buyout Vrindavan Tech Village for US$356 million

n Ask Real Estate Portfolio I’s US$25 million investment in ATS Infrastructure Ltd.

OutlookThe outlook for India’s private equity market remains uncertain, but private equity funds and investors should be aware of key trends such as:

n Start-ups and entrepreneurs are increasingly willing to engage with private equity investors – and vice versa. This will help drive some private equity activity (more venture capital) in coming years.

n The most attractive targets for private equity funds are in sectors underpinned by robust domestic demand, particularly healthcare and consumer goods

n Exits will be at the top of the agenda for many private equity funds.

n There will be a greater focus on quality investments, illustrated by more comprehensive pre-investment due diligence and longer deal cycles

n Restructuring of stressed assets in India will drive the entry of new breed of institutional investors (special situation funds) in sectors such as energy and infrastructure.

In our view, private equity investors need to be savvy and patient to secure attractive returns in India’s turbulent market.

For more informationSanjay Bansal is the founder and Managing Partner of Aurum Equity Partners LLP in New Delhi, India. He can be reached on +91 124 442 4477 or [email protected]. Aurum Equity Partners LLP is a Crowe Horwath International business associate.

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East AsiaMok Yuen [email protected]

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Latin AmericaRoberto Pé[email protected]

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Southeast AsiaAlfred [email protected]

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Western EuropePeter [email protected]

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