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Warburg Pincus joins race for India's Future Capital

  • Susannah Birkwood
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US buyout firm Warburg Pincus is thought to have joined the race to acquire a stake in India's Future Capital Holdings (FCH), the financial services unit of the Future Group.

Media reports have indicated that the investor is in advanced talks to snap up the 56% stake held by Kishore Biyani-controlled Future Group, which has been considering its exit options for the past two years.

Warburg Pincus has mandated law firm AZB & Partners to conduct the second phase of due diligence on FCH. Its main competitor now appears to be Hyderabad-based Deccan Chronicle Holdings, which previously tried to acquire the asset but failed due to a lack of funds.

Last November, the Blackstone Group and Bain Capital were both identified as potential acquirers of the company, having entered into discussions about the price of a potential deal and whether to involve both funds or just one. And last August, KKR was thought to be in the running, while Baring India and CX Partners have also been cited in connection with the sales process.

Morgan Stanley initialized the auction for the stake last year, but this was taken over by the promoter of a Mumbai-based investment bank in March. KPMG India has been responsible for due diligence on behalf of one of the prospective buyers.

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