India: The Most Active Deal Destination in the BRIC Region in 2011

by Kevin Smith

  • 16 Feb 2012
  • PE

Of BRIC countries (Brazil, Russia, India and China), Brazil dominated the private equity-backed buyout deals market during 2010, attracting aggregate capital of $5.8bn across 22 deals. Across the year, China also attracted a significant amount of activity, with deal volume hitting 45 deals and aggregate investment totalling $4.5bn. Despite this, however, things have since changed within the economic area.

Figures recorded for 2011 show that India has now become the more attractive country for fund managers looking to deploy their capital. Compared with 2010 figures, all aspects of India's deals have increased – from deal volume, to aggregate deal value, to the average deal size.

India’s average deal size has increased by 43% over 2010 figures, going from the average $42.8mn seen in 2010 to $61.2mn per deal seen in 2011. The volume of deals hit 149 in 2011 versus the 79 transactions recorded for the entire 2010 period. Furthermore, India’s aggregate deal value in 2011 increased by 174% over the figures witnessed in 2010, rising from $2.7bn to $7.4bn.

In 2011 the largest deal completed across all BRIC economies was the private investment in the publicly listed Mumbai–based IT and business solutions company, iGATE Patni (formally Patni Computer Systems). Investors in the transaction were iGate and Apax Partners, who acquired a 63% stake in the business for $1.22bn. The deal was supported by a $700mn debt packed provided by Jefferies and RBC Capital Markets.

So far this year, as at 16th February, India is continuing to attract the most private equity capital amongst other countries within the BRIC region. It has clocked up 22 deals to date, representing an aggregate $823mn in value. In comparison, China has recorded eight deals this year to date for an aggregate $576mn, while Brazil has recorded just three representing a total of $102mn.  

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