Private equity (PE) deals fell by 46 percent in the first half of this year on the back of a steep fall in deal values and a weak exit market. Only 643 PE deals worth $5.8 billion were recorded in the first six months of this year; the worst hit is the energy sector that saw no deal in the period under consideration, according to News Corp VCCEdge, the financial research platform of News Corp VCCircle.
On a quarterly basis, deal value is down by 62 percent from $6.1 billion to $2.2 billion between Q2 CY15 and Q2 CY16; the lowest investment received in the second quarter since 2013.
In the last six months, the deal volume fell by 13 percent compared to 737 deals in the corresponding period last year. The energy sector saw four deals worth over $0.5 billion in the first half of last year, which came down to zero this year. In Information Technology, while the number of deals actually increased, the total value slipped slightly compared to a year ago period. Health care saw a 14 percent drop in the number of deals.
The year, however, saw a stark increase in angel investments, though institutional funding across venture and late stage slowed down considerably. Angel and seed investments grew by 16 percent to 368 deals in the January-June period this year from 317 deals a year ago, while deal value slipped by 25 percent to $100 million from $134 million, suggesting a drop in average ticket-size. Median deal value too was down to $1 million from $1.58 million during the same period.