Markets

VCs, Private Equities Close Deals Worth $162b in Q3

Published

6 years ago

October 9, 2018

VCs, Private Equities Close Deals Worth $162b in Q3

Capital seems to be flowing at breathtaking pace this year as third quarter result shows that venture capital (VCs) and private equity funds backed a total of 5,099 deals worth $162 billion in Q3, according to data released by Preqin.

Analysts say the rise in startup and public company valuations as well as increased risk appetite in the venture capital space are the main reasons for a surge in deal value.

VCs alone closed 3,894 deals worth $69 billion in Q3, bring total year to date deal making to $195 billion. This surpasses total value of VCs deals in full year 2017 which was around $189 billion. Thus, cementing investors confidence in growth companies.

Private equity deals chilled in Q3 as total deals dropped to 1,205 worth $93 billion from 1,274 deals worth $129 billion in Q2. However, year on year analysis shows that PE deals rose significantly in the preceding quarter from its level in Q3 2017.

Deals in private equity space has slowed down, causing dry powder to exceed $1 trillion as PE firms struggle to find deals as fast as they are able to raise cash. Dry powder refers to money already raised by PE firms but yet to be invested in companies.

According to Bloomberg, “valuations of potential targets are high and PE firms are facing increased competition from strategic acquirers for the best assets.”

PE deals in Q3 were predominantly in North America as the region accounted for almost 55 percent of the total private equity deals. On the other hand, VCs looked to Asia for opportunities as China accounted for 6 of the 10 largest deals announced in Q3 compared to US who only accounted for 2. Together, the two largest economies attracted 80% of the top 10 VC investment in Q3.

In Q2, Chinese startups accounted for 9 out of the top 10.

The largest VC deal in the third quarter was the acquisition of Hangzhou Mouth by Alibaba Group and Softbank for $3 billion. Singapore based ride hailing firm Grab’s $2 billion Funding round in August was the second largest VC deal during the period.

Nigerian firms were not left out of the startup binge. In Q3, Nigerian based payment solutions providers, Paystack raised $8 million while ISP startup raised $3 million. EdTech startup, PrepClass also raises $1 million as VC interest to local startups continue to increase after previous successes.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Crude Oil

Oil Prices Rebound on OPEC+ Output Delay Talks and U.S. Inventory Drop

Published

2 days ago

September 5, 2024

Samed Olukoya

Oil prices made a modest recovery on Thursday on the expectations that OPEC+ may delay planned production increases and the drop in U.S. crude inventories.

Brent crude oil, against which Nigerian oil is priced, rose by 66 cents, or 0.9% to $73.36 per barrel while U.S. West Texas Intermediate (WTI) crude appreciated by 64 cents or 0.9% to $69.84 per barrel.

The rebound in oil prices was a result of the American Petroleum Institute (API) report that revealed that the U.S. crude oil inventories had fallen by a surprising 7.431 million barrels last week, against analysts 1 million barrel decline projection.

The decline signals better than projected demand for the commodity in the United States of America and offers some relief for traders on global demand.

John Evans, an analyst at PVM Oil Associates, attributed the rebound in crude oil prices to the API report.

He said, “There is a pause of breath and light reprieve for oil prices.”

Also, discussions within the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are fueling speculation about a potential delay in planned output increases.

The group was initially expected to increase production by 180,000 a day in October 2024.

However, concerns over softening demand in China and potential developments in Libya’s oil production have prompted the group to reconsider its strategy.

Despite the recent rebound, analysts caution that lingering uncertainties around global oil demand may continue to weigh on prices in the near term.

Energy

Power Generation Surges to 5,313 MW, But Distribution Issues Persist

Published

3 days ago

September 4, 2024

Samed Olukoya

Nigeria’s power generation continues to get better under the leadership of President Bola Ahmed Tinubu.

According to the latest statement released by Bolaji Tunji, the media aide to the Minister of Power, Adebayo Adelabu, power generation surged to a three-year high of 5,313 megawatts (MW).

“The national grid on Monday hit a record high of 5,313MW, a record high in the last three years,” the statement disclosed.

Reacting to this, the Minister of Power, Adebayo Adelabu, called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

He added that efforts would be made to encourage industries to purchase bulk energy.

However, a top official of one of the Discos was quoted as saying that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

On Saturday, the ministry said power generation that peaked at 5,170MW was ramped down by 1,400MW due to Discos’ energy rejection.

Crude Oil

Again NNPC Raises Petrol Price to N897/litre

Published

4 days ago

September 4, 2024

Investors King

The Nigerian National Petroleum Company (NNPC) Limited has once again increased the price of Premium Motor Spirit (PMS) from N855 per litre on Tuesday to N897 on Wednesday.

The increase was after Aliko Dangote, the Chairman of Dangote Refinery, announced the commencement of petrol production at its refinery.

The continuous increase in pump prices has raised concerns among Nigerians despite the initial excitement from the refinery announcement.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the 650,000 barrels per day refinery will supply 25 million litres of petrol to the Nigerian market daily this September.

This, NMDPRA said will increase to 30 million litres per day in October.

However, the promise of increased fuel supply has not yet eased the situation on the ground.

Tunde Ayeni, a commercial bus driver at an NNPC station in Ikoyi, said “I have been in the queue since 6 a.m. waiting for them to start selling, but we just realised that the pump price has been changed to N897. This is terrible, and yet they still haven’t started selling the product.”

The price hike comes as NNPC continues to struggle with sustaining regular fuel supply.

On Sunday, the company warned that its ability to maintain steady distribution across the country was under threat due to financial strain.

NNPC cited rising supply costs as the cause of its difficulties in keeping up with demand.