PE-VC exit deals rebound in Q3 2020

“In the investment business, timing an exit is not always easy. Timing becomes even more unpredictable in times of a pandemic,” said Pankaj Raina, Managing Director, Research and Investments, Zephyr Peacock India, adding, “Since there was an opportunity as investment activity began to resume, investors who were nearing their fund life cycle, wanting to improve distributions, exited.”

“I expect investment activity to pick up in the next few quarters. Most of us, including the entrepreneur universe, have now accepted the new normal. We will continue to find innovative ways to support deal-making activities,” Raina said.

Click here to read the full article on “The Hindu Business Line”

Below is an excerpt from the post that first appeared on The Hindu Business Line on 17 November 2020:

The number of PE-VC exits in Q3 of 2020 rose to 40, the same as in Q1 2020. In Q2, the number of PE-VC exit deals dropped to 17, the lowest in the last 20 quarters.

The number of VC exits also jumped back to 16 deals in Q3 from nine in Q2, but did not quite reach Q1 levels of 23 deals.

The amount involved in the exit deals in Q3, however, was lower than in Q1, the data showed.

For instance, for PE-VC exits, the amount in Q1 was $2,532 million, while in Q3, it dropped 38.5 per cent to $1,558 million. Likewise, for VC exits, the amount was $299 million in Q3, a 33.7 per cent drop from Q1’s $451 million. And on a year-on-year basis, the dip was even higher. In Q3 2019, PE-VC exits amounted to $3,762 million through 49 deals, and VC exits stood at $1,918 million via 22 deals.

Click here to read the full article on “The Hindu Business Line”