US private equity major KKR has initiated the process to exit Avendus Capital, a leading financial services firm it acquired a majority stake in over eight years ago. Sources familiar with the matter revealed that KKR has enlisted Nomura as a sell-side advisor for this purpose.
KKR’s investment in Avendus dates back to November 2015 when it acquired a controlling stake from existing investors. The private equity giant paid around $115-$120 million for a 58 percent stake, valuing the firm at approximately $206 million at the time.
As of March 31, 2023, KKR held about 63 percent stake in Avendus Capital. Other investors, including Gaja Capital and certain members of the founding group, may also consider joining KKR in the exit, potentially offering a combined stake of 70 percent to 75 percent for prospective buyers.
While private equity funds are the preferred choice for the stake sale, overseas suitors, particularly from Japan, may also express interest. This move presents an opportunity for strategic bidders lacking a robust investment banking business to strengthen their foothold in the market.
Avendus Capital
Avendus Capital, co-founded by Gaurav Deepak, Ranu Vohra, and Kaushal Aggarwal in 1999, offers a range of financial solutions including investment banking, wealth management, and asset management. The group, with a workforce of 550-600 across 10 cities globally, has been involved in significant deals such as Bain Capital’s acquisition of Adani Capital and Carat Lane’s stake sale to Titan.
Despite the ongoing negotiations, KKR and Nomura declined to comment on the matter, while Avendus Capital refrained from offering any statement as per its policy. Gaja Capital could not be reached for immediate comment.
The proposed exit comes amid Avendus Group’s strategic expansion efforts, including the acquisition of Spark Capital’s institutional equities and research vertical, as reported by Moneycontrol in January 2022. With a healthy financial position and diversified service offerings, the group remains well-positioned for future growth.