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December 18, 2018

ICG buys Standard Chartered private equity spin-off

Funds managed by ICG Strategic Equity, a unit of Intermediate Capital Group (ICG), have agreed to acquire a majority of Standard Chartered’s private equity assets in a deal worth around £790m.

Private equity investments in 35 firms across South-East Asia, India, China, South Korea, Middle East as well as Africa form part of the acquired assets.

The transaction backs the spin out of Affirma Capital through a management buyout. Affirma, an independent private equity business, will be run by the leadership of Standard Chartered Private Equity.

This private equity team, headed by Nainesh Jaisingh, will continue to manage the portfolio acquired by ICG.

The deal is said to be mutually beneficial, enabling Standard Chartered to lower its balance sheet exposure to principal finance.

On the other hand, it marks ICG strategic unit’s first investment in Asia.

ICG CEO Benoît Durteste said: “This first transaction for our Strategic Equity business in the region demonstrates its global reach and potential for growth.

“The success ICG has enjoyed, first in Europe and more recently in North America, has shaped our strategy toward our expanding business in Asia, with Asia’s growing economies creating significant investment opportunities for ICG.”

Besides, ICG pledged £316m to Affirma for new deals as well as follow-on investments.

The deal, whose financial terms were not revealed, is expected to be wrapped up in the first half of next year. The bank will take a restructuring charge of nearly $160m in connection with the deal.

Standard Chartered CEO of corporate, commercial and institutional banking Simon Cooper said: “This transaction will see the Group exit the majority of its private equity exposure, and gives the SCPE team an opportunity to pursue an independent future with the backing of ICG Strategic Equity.”

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