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COVID-19 impact: VC, PE-VC exit deals tumble in Q1 2020

Posted on 22 May, 2020


“Starting Q1, IPO markets started to evaporate, as investors started pulling money out of emerging markets. Given COVID-19, both funds and corporates also slowed down – funds started to emphasize on existing portfolio companies and corporates wanted to ascertain their own cash positions before placing new bets,” said Pankaj Raina, Managing Director, Research and Investments, Zephyr Peacock.

Raina added that even bankers were not able to sign new mandates. “Existing deals in the pipeline stalled as the valuation scenario was cloudy, and given the impact of COVID-19 on the overall economy, it became difficult to ascertain the true business or profitability and cash position of companies willing to sell,” he 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 22 May 2020:

 

It is not only the funding for start-ups that have crashed due to the pandemic, but also the number of private equity-venture capital (PE-VC) and venture capital (VC) exit deals, in the first quarter of 2020.

According to data from Venture Intelligence, a firm that tracks private companies’ investments, financials and valuations, the number of PE-VC exit deals fell to 33 in calendar year Q1 2020, the lowest in the past 10 years. The number of VC exit deals also fell to 16, the lowest since Q3 2015.

 

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

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Zephyr Management is a global emerging markets investment manager, specializing in the creation and management of highly focused private equity funds

Since its inception in 1994, Zephyr has sponsored 22 investment funds in both public and private securities markets representing approximately $1.2 billion in combined commitments and assets under management

Emerging Markets Focus

The firm has initiated several private equity funds investing in several African countries, South Korea, Mexico, India, and Sri Lanka since its founding. Zephyr's funds serve medium size enterprises that are often ignored by larger private equity players. Zephyr funds provide growth capital to established companies with proven business models and sustainable competitive advantages.

Investment activities are currently focused on India, Sri Lanka and Africa.

Zephyr Peacock India

Zephyr Peacock India provides equity financing for fast growing, small to medium sized companies led by strong entrepreneurs and management teams.

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Emerald Sri Lanka Fund

Emerald Fund provides equity financing for fast growing, small to medium sized (SME) Sri Lankan companies led by strong entrepreneurs & management teams.

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Zephyr Acorn provides equity

Zephyr Acorn provides equity financing and business support to innovative early-stage companies in East Africa.

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Active Portfolio Support

The firm's special expertise lies in bringing global best practices to medium-sized growing companies by assisting them in conceptualizing sustainable business strategy, management development, compensation, ESG, expansion outside of their home country, capital structure and positioning for stock exchange listing or trade sale.