Bain Capital To Acquire And Invest In Adani Capital The transaction will buy out 100% of the Adani family's private investments in the company, with Gaurav Gupta fully rolling his stake in the company and continuing to serve as managing director and CEO
By Teena Jose
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Global private investment firm, Bain Capital, announced that it has entered into a definitive agreement to acquire 90% of Adani Capital and Adani Housing. According to an official release, the transaction will buy out 100% of the Adani family's private investments in the company, with Gaurav Gupta fully rolling his stake in the company and continuing to serve as managing director and CEO.
"We see compelling opportunities to partner with Gaurav and team to support and facilitate Adani Capital's next phase of growth by providing access to significant capital, strategic and operating resources, and deep experience partnering with financial services businesses in India and across the globe. The company has strong business fundamentals, an experienced team, with ability to serve and expand to core segments like agriculture, housing and to underbanked rural areas," said Rishi Mandawat, partner, Bain Capital.
Bain Capital has also committed $120 million in primary capital to facilitate the company's ongoing growth. Further, Bain Capital is also immediately making available to the Company a liquidity line $50 million in the form of Non-Convertible Debentures, as per the release, adding that the transaction is expected to close in Q4 2023, pending necessary regulatory and market approvals.
"Our aim has always been to support micro-entrepreneurs and first-time homeowners in Bharat and to be the most economical and convenient lender to our customers by leveraging technology. The team and I are very pleased to welcome a partner like Bain Capital who shares our vision of making affordable finance available to our customer segment with a strong focus on customer literacy and education. With Bain committing INR 1,000 crore of capital in the company, we are now equipped to grow 4 times from here," said Gaurav Gupta.
Avendus Capital was the financial advisor to Adani Capital, Adani Housing Finance and their shareholders on this transaction, whereas Rothschild was the exclusive financial advisor to Bain Capital on this transaction.
