CVC to acquire Executive Centre from Headland

It is the first investment from CVC's fourth pan-Asian fund, which reached a final close earlier this week at the hard cap of $3.5 billion.

The deal - which is expected to close by the end of the month - makes CVC TEC's fourth PE owner. Headland acquired a majority stake in TEC in 2009 from Marathon Asset Management, a New York-based alternative investment and asset management company, which in turn had bought the business from GEMS in 2007, according to AVCJ Research. 

Headland will retain a minority stake in the business.

Established in 1994 by current Chairman and CEO Paul Salnikow, TEC claims to be Asia's leading serviced office provider. It has 61 centers across 20 major cities in 10 countries and generates more than $100 million in annual revenue.

In addition to offering serviced offices, the business provides virtual offices, meeting facilities, video conferencing and a broad range of business concierge services.

"Paul Salnikow and his team have built a first-class business, which provides the highest quality offering in a structurally growing market," Roy Kuan, managing partner at CVC, and James Redmayne, head of the firm's pan-Asia team, said in a joint statement. "We look forward to working with them and using CVC's capabilities across Asia and beyond, to help take The Executive Centre to the next stage of its development."

CVC was advised by PricewaterhouseCoopers, Bain & Company, Freshfields and Clifford Chance. TEC management was advised by Norton Rose, while Allen & Gledhill served as counsel to Headland.

Debt financing is being provided by HSBC and Babson Capital.

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• Topics
• Greater China
• Buyouts
• Buyout
• Exits
• Secondaries
• CVC Capital Partners
• Hong Kong (China)
• Headland Capital Partners
• Exit
• Secondaries
• buyout