Posted on 17 November, 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.
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.
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 and/or managed 26 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.Read More
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.Read More
Zephyr Acorn provides equity
Zephyr Acorn provides equity financing and business support to innovative early-stage companies in East Africa.Read More
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.