After a complex three year process, Standard Chartered Bank has completed the sale of the majority of its private equity investment portfolio to Affirma Capital backed by Intermediate Capital Group’s Strategic Equity funds.
In 2016 the bank decided to reduce its balance sheet exposure to Principal Finance by streamlining it over time and managing its third-party portfolio to maximise value for shareholders and third-party investors.
Affirma Capital, a newly formed, independent private equity firm owned and operated by former members of the management team of Standard Chartered Private Equity, now manages the portfolio and related investment activities.
The portfolio comprises over 50 private equity investments in approximately 35 companies across Southeast Asia, India, China, South Korea, the Middle East and Africa.
Affirma Capital has assets under management (AUM) of $3.6bn and over $700m for new investments and a team of 52 investment professionals.
Commenting on the completion of the MBO, Nainesh Jaisingh, CEO, Affirma Capital, said:
“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. This team has earned its right to independence, having delivered a record amount of distributions to our stakeholders, our third-party LPs as well as Standard Chartered Bank,” he said.
“We will continue our proven and successful strategy of backing emerging national and regional champion companies in our footprint. We are thankful to ICG’s Strategic Equity team for backing us, and to both our existing LPs and the Bank for their continued support in enabling the launch of Affirma Capital,” Jaisingh 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. We are proud and excited to back Nainesh and his partners in this spin-out, and wish them great success in their future as an independent manager,” said Commenting on the transaction, Ricardo Lombardi, Managing Director, ICG Strategic Equity.
Afiirma Capital has announced its first new investment, which is a $50m investment in Tirupati Medicare, a manufacturer of nutraceutical supplements in India.
Affirma Capital’s list of investors constitutes some of the world’s leading institutional investors, sovereign wealth funds, developmental financial institutions and family offices.
