India: Private equity player KKR to acquire majority stake in investment bank Avendus Capital

Visual sourced from Avendus Capital website

US-based private equity group KKR is set to acquire a majority stake in Mumbai-based investment banking firm Avendus Capital for about $100 million, as per a report in The Economic Times.

As part of the proposed deal, KKR will acquire controlling stake in the Indian firm by subscribing to both its existing and fresh equity.

While the proposed deal may also see a few exits, the current promoters will continue to remain at the helm. The three founding promoters — Ranu Vohra, Gaurav Deepak, Kaushal Aggarwal — together with their leadership team currently own a majority in the 15-year-old Indian asset and wealth management firm.

Eastgate Capital, a private equity and realty investment arm of NCB Capital of Saudi Arabia, that had picked up a little over 26% in Avendus Capital in 2008 is likely to exit, the report said.

The proposed move will provide Avendus access to strategic capital and help leverage the brand and network of KKR to diversify and deepen its presence in investment banking. The deal is also expected to boost Avendus’ wealth management and private equity divisions besides aiding its planned entry into lending through the nonbank finance company (NBFC) route.

KKR India, the Indian arm of global private equity firm KKR and Co. Lp, has both a non-banking financial company (NBFC) and a real estate NBFC through which it offers structured loans.

The Avendus Group is a provider of financial services with an emphasis on customised solutions in the areas of financial advisory, capital markets, wealth management and alternative asset management. The group’s clients include institutional investors, corporates and high net worth families.

Avendus Capital, Inc (US) and Avendus Capital (UK) Pvt. Ltd. are the subsidiaries offering M&A and private equity syndication services to clients in the US and UK, respectively.,

In 2014, Avendus Capital was the advisor to 31 transactions and helped raise $3.46 billion. The firm was amongst the top two advisors in India by deal count for calendar 2014.

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.