StanChart said to be in talks to sell beleaguered PE business to ICG

Photographer: Anthony Kwan/Bloomberg

The managers of Standard Chartered Plc’s private-equity unit have secured backing for a multibillion-dollar spinoff from Intermediate Capital Group Plc as the British-based bank exits that business, according to people with knowledge of the matter.

Standard Chartered will sell about $1 billion of assets to ICG, a London-based asset manager, under the terms of the proposed deal, the people said. A new company, owned by executives at the bank’s private-equity unit and led by Nainesh Jaisingh, will then manage this portfolio along with about $2.1 billion for third-party investors including Goldman Sachs Group Inc., said the people, who requested anonymity as the details are private.

The private-equity division has been a burden for Standard Chartered Chief Executive Officer Bill Winters as he attempts to overhaul the bank and pull back from risky deal-making. The unit, which invests in companies across emerging markets, has been responsible for more than $1 billion of losses and restructuring costs since he took charge three years ago, and he’s been looking for ways to exit the business since late 2016, Bloomberg has reported.

Julie Gibson, a spokeswoman for Standard Chartered in London, and Alicia Wyllie, a spokeswoman for ICG, declined to comment.

ICG will also provide about $400 million to the new, spun-out firm for fresh investments, which would ultimately bring its assets under management to about $3.6 billion if the deal is successful, the people said. The transaction is expected to be completed by the end of the year, one of the people said.

London-based ICG manages about 33 billion euros ($38 billion) of assets, according to its website. The firm’s strategic equity business, overseen by Ricardo Lombardi, is leading its involvement in the deal, one of the people said.

Standard Chartered’s private equity unit has used the bank’s funds to amass stakes in emerging-market companies, including a Vietnamese kids’ play-center operator, an Indian movie-production company, a Jordanian poultry producer and, more recently, a Singaporean crane supplier.

While initially profitable, the division’s fortunes turned in 2015, partly because of the plunge in commodity prices. Winters considered selling the business to its managers in 2016 before pledging instead to exit the business by the end of this year.

Bloomberg

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.