Buyouts Power PE Deal Activity

A few high profile private equity (PE) buyouts have pushed up PE deal activity in the first nine months of 2013. Consequently, PE deals during this period have risen 34 percent in value terms over the same period in 2012.

Data provided by Dealtracker, the quarterly update put out by Grant Thornton India LLP, shows the key PE deal in the July-September quarter was the $400 million investment by Baring PE in Hexaware Technologies, where the PE firm bought a sizeable 41.8 percent stake. The KKR acquisition of the Alliance Tire Group and Blackstone’s acquisition of Agile Electric were the other important deals. The IT and ITeS sector topped in terms of PE deal activity, garnering 38 percent of the total share.

Raja Lahiri, partner-transaction advisory services at Grant Thornton India LLP, says the firm expects the trend of PE fund buyouts to continue.

In general, however, it’s been a rather mixed bag on the deals front, even as policymakers seek to bring back some energy into the economy. Mergers & acquisitions activity has slowed down, with 377 deals worth $23.95 billion, lower than in the same period in 2012 and 2011.