The two Japanese firms have made the highest preliminary bids for KKR’s 63% stake in Avendus Capital Pvt., said the people, who asked not to be identified as the discussions are private. The US private equity firm is seeking at least $400 million for its stake, and as many as seven firms, including Carlyle Group Inc., have expressed interest, the people said.
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A spokesman at Avendus said the firm has received multiple bids and all are in evaluation stage, adding that it has also appointed Rothschild & Co. as the sell-side advisor. Nomura, which earlier stepped down as an adviser on the deal, Mizuho, and Carlyle declined to comment. KKR didn’t respond to a request for comment.
KKR and Avendus management are working together on the sale, the people said. Avendus’s executives, led by Chief Executive Officer and Co-founder Gaurav Deepak, prefer a global asset manager or a group of family offices to become their new backers to give them more freedom in managing and expanding the business, the people said.
“The Avendus management does not have any strong preference for any particular type of investor,” the spokesman said in a statement. “We are still speaking to everyone at this point as it is still early in the process.”
KKR bought the stake in Avendus in 2015 for around $115 million and agreed to invest more money in 2017, according to the company’s website. The management team has a say in the transaction since they drive the mainstay businesses, including investment banking, the people said.
Under Deepak, the company has been seeking to bolster its wealth management, lending and equity capital market operations to generate a steady stream of revenue outside the investment-banking unit, which has been its key growth engine. The pandemic and rising competition in some areas have delayed plans to reach its targeted growth levels.
Avendus is the only private equity-backed investment bank among the country’s top firms, making it a sought-after target for bidders looking to tap into India’s hot market for initial public offerings and mergers. With close to 150 deal makers across the country, it’s also the country’s biggest investment bank by headcount.
