Asia Digest: Affirma Capital completes MBO of SCPE; Nyca closes $210m third fund

A sign hangs above the entrance to the headquarters of Standard Chartered Plc in London, U.K. Photographer: Chris Ratcliffe/Bloomberg

Affirma Capital, the private equity business spun off from Standard Chartered Bank (SCB), has completed its management buyout from the bank after a three-year process. Meanwhile, American fintech investor Nyca Partners, which operates a fund backed by Thailand’s Digital Ventures, has closed its third vehicle at $210 million.

Affirma Capital completes MBO of StanChart PE

Affirma Capital, the private equity business spun off from Standard Chartered Bank (SCB), has completed its management buyout from the bank, according to an announcement.

The transaction was led by Affirma Capital’s seven partners and backed by Intermediate Capital Group’s (ICG) Strategic Equity funds through the acquisition of the majority of the SCB’s private equity portfolio. The spin-off took three years and involved over 50 investments across six regions (China, India, South East Asia, South Korea, Sub-Saharan Africa and the Middle East), and a team of 52 investment professionals.

Affirma Capital currently has $3.6 billion in assets under management and over $700 million for new investments.

During the past three years, the private equity team that now constitutes Affirma Capital has deployed over $650 million in 13 market-leading companies across its core markets of Asia, Africa and the Middle East, the firm said. They have also generated over $1.2 billion of exit proceeds with capital gains of nearly $500 million during the same period. In total, through a 17-year history of investing in emerging markets, the team has deployed over $5.5 billion in more than 90 companies, and has returned over $5 billion.

Affirma Capital itself has announced investments in India-based Tirupati Group, Chinese P2P lender Dianrong and South Korea’s Hwa Sung Cosmetics.

“The spin out of Standard Chartered Private Equity into Affirma Capital is a landmark transaction and the largest ever MBO of an emerging market private equity business,” said Nainesh Jaisingh, CEO, Affirma Capital.

ICG Strategic Equity MD Ricardo Lombardi added: “This deal marks the Strategic Equity team’s first transaction in Asia, and is evidence of the scale and global nature of the investment opportunities available in complex private equity secondary transactions.”

Nyca Partners closes $210m third fund

Nyca Partners, the US-based venture capital firm which got Siam Commercial Bank’s Digital Ventures as an investor, has closed its third fund at $210 million, according to its blog post.

The fintech investor said it has attracted a network of 21 institutional investors and 55 limited partner advisors over the past five years.

Its first fund was closed in 2014 at $30 million while its second vehicle closed at $140 million in 2016. Thailand-based Digital Ventures invested in Nyca’s second vehicle.

The Siam Commercial Bank’s venture capital arm looks at fintech opportunities globally and has invested in a spate of VC funds as well as fintech companies.

“Our complete focus has been to invest in companies where technology creates a distinct competitive advantage in financial services,” it said.