Advent exits India’s CAMS as NSE buys 45% stake
Advent International has fully exited its stake in Computer Age Management Services (CAMS) after a subsidiary of India’s National Stock Exchange (NSE) bought a 45% stake in the company, which provides transaction processing and other back office services to mutual funds.
The investment has also allowed partial exits for Housing Development Finance Corporation (HDFC), HDFC Bank and Acsys Software India. NSE said in a statement that the remaining 55% would continue to be held by Acsys and HDFC group, while there will be no change in management structure or operation.
Advent acquired a minority stake in CAMS in October 2007, paying $90 million. It was the private equity firm's first investment in India. Reports that Advent and HDFC had hired banks to identify potential buyers emerged in 2011 but nothing came of it. Advent was said to own 29.99% of CAMS, while the HDFC entities and Acsys held 31.16% and 38.82%, respectively.
The previous year the Bombay Stock Exchange reportedly tried to buy 51% of CAMS for INR6.5 billion (then $140 million) but the transaction failed to win regulatory approval.
CAMS is an IT-enabled services provider to financial sector players, primarily mutual funds. It combines IT infrastructure, domain expertise and process maturity to serve both as a B2B and B2C solutions partner. The company claims to have a 60% share of India's mutual funds market.
"This association will bring in unique capabilities in expanding the reach of mutual funds and other financial products through the exchange infrastructure of member terminals across the country, apart from its unique capabilities in governance of members, settlement and market making," NSE added.
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