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.