Carlyle backs Quest Global, Bain, Advent exit
The Carlyle Group has agreed to acquire a significant minority stake in Singapore-based engineering services company Quest Global, facilitating exits for Bain Capital and Advent International.
Financial details were not disclosed. The transaction is said to value the company at around USD 2bn, according to various regional media outlets. The Economic Times said Carlyle paid USD 500m for a 28% stake.
Bain and Advent acquired a minority stake in a USD 350m deal that also featured Singapore’s GIC and valued the company at about USD 1bn in 2016. That investment provided an exit for Warburg Pincus, which took a 26% stake for USD 75m in 2010.
ChrysCapital and True North of India backed a USD 150m round in 2021; India represents Quest’s largest operational footprint with eight offices. Carlyle invested USD 6m in the company in 2003 and exited in 2007, when Quest bought back its shares.
The latest transaction will also see Quest repurchase some shares. Chairman and CEO Ajit Prabhu will concurrently acquire an additional, unspecified stake in the company.
“We have known Ajit for two decades and we believe he has demonstrated visionary leadership over these years," Amit Jain, a managing director and head of India at Carlyle with a background in mechanical engineering, said in a statement.
“We believe the company’s undivided client centricity, drive for engineering excellence, differentiated global delivery model and the entrepreneurial energy of the management team have enabled it to scale successfully across a diverse set of industry verticals.”
Quest was founded in 1997 to service the design, product development and operations of complex engineering systems. There are more than 17,500 employees across 67 locations in 17 countries. Core areas include aerospace and defence, automotive, energy, deep tech, healthcare and medical devices, rail, and semiconductors.
As of the Bain, Advent, and GIC investment there were about 7,800 employees, mostly in India. Annual revenue at that time was around USD 385m. As of the ChrysCapital and True North investment, there were 11,250 staff across 54 locations in 13 countries.
The company hopes to tap into a perceived growing focus on product innovation, digital engineering, embedded systems, increased outsourcing, and disruptive technology advancements across industries. It said it would leverage Carlyle’s sector expertise and global network to expand.
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