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Providence biggest PE player in H1 ’08

Providence has emerged as the biggest private equity(PE) investor in the first half of this year in India while ICICI Venture, Sequoia and Citigroup have been the most active firms in terms of number of PE transactions announced. The period, which coincided with the first major prolonged market correction over the last three years, also saw PE activity dipping in volume terms for the first time year-on-year. In all, there were 186 deals worth $7.09 billion during H1 2008 against 195 transactions with a value of $6.77 billion during the first half of last year. Moreover, even as new PE firms set shop in the country, the number of funds striking at least one deal has dropped considerably from 125 funds in H12007 to 90 in H12008, according to data compiled by advisory firm Grant Thornton. Says Grant Thornton, partner, specialist advisory services, CG Srividya, “Last year, the flow of PIPE deals was very strong, but this has come down due to the market crash. Secondly, some large global banks have become more cautious in striking deals, which has affected transaction volume.” […]