KKR buys controlling stake in India's Avendus
KKR has bought a 70% stake in Indian financial services firm Avendus Capital for an undisclosed sum.
The GP's purchase comprises newly issued shares and shares from existing Avendus investors; the selling shareholders are Eastgate Capital and Americorp Ventures, according to a release.
Avendus will retain its existing management team, led by co-founders Ranu Vohra, Gaurav Deepak and Kaushal Aggarwal. KKR's investment will allow the company to expand its corporate financial services business and grow its wealth management offerings and alternative asset portfolios.
KKR made its investment from its second pan-Asian fund, which closed in 2013 at $6 billion. While the size of the transaction was not disclosed, various reports have put the investment at around $100 million.
"India is witnessing unprecedented demand for innovative and integrated financial services products as a result of rising entrepreneurship across sectors," said KKR India CEO Sanjay Nayar. "Avendus is a world-class firm built and run by three visionary founders, which delivers solutions to meet this demand by offering diverse alternative investment products and wealth advisory services."
In addition to its financial services division, Avendus is also active in venture capital and PIPEs. The firm launched its PIPE-focused India Opportunities Fund III in 2013, and has also established a tech-focused VC fund with Zodius Capital. The fund launched last year with a target of $500 million, and reached a first close of $110 million in May.
KKR is active in the financial services sector as well. Along with investing in non-banking finance companies (NBFC) such as Magma Fincorp, for which it joined a INR5 billion round this year with LeapFrog Investments and India Value Fund Advisors, the firm has sponsored two NBFCs of its own, including a real estate-focused venture co-sponsored by Singapore's GIC Private.
The latest NBFC launched in January, with US-based Townsend Group coming on board as a partner in November.
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