The portfolio, which will be managed on a day-to-day basis by Affirma Capital, is comprised of private equity investments in 35 companies across Southeast Asia, India, China, South Korea, the Middle East and Africa. At closing, Affirma Capital will have assets under management of £2.85bn ($3.6bn), which includes the portfolio being acquired by the ICG Strategic Equity funds, as well as assets managed for third-party investors in SCPE’s existing Marina and Korea Funds.
ICG Strategic Equity is also making available to Affirma Capital a newly-established pool of £316m ($400m) in dry powder available for new deals and follow-on investments in the acquired portfolio. The terms of the agreement are confidential and the transaction is expected to complete in the first half of 2019.
ICG Strategic Equity, which targets private equity investments through fund restructuring transactions, co-investments, spin-outs and other special situations, was launched in 2014 and until now, had been focused on investments in North America and Europe. It currently operates with a team of 12 investment professionals based in New York, London and Hong Kong.
Benoît Durteste, Chief Executive Officer of ICG, 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.
Ricardo Lombardi, Managing Director of ICG Strategic Equity, added:
We are excited to acquire this high quality, diversified portfolio of private equity assets in partnership with Affirma Capital. The team of 55 investment professionals, led by Nainesh Jaisingh, has a strong track record, extensive experience and deep, local networks in the regions we are investing in. ICG Strategic Equity’s execution capabilities now span across North America, Europe and Asia and our ability to develop innovative liquidity solutions combined with our strong capital base make us an attractive partner for leading sponsors globally.
Nainesh Jaisingh, Chief Executive Officer, Affirma Capital, commented:
We are grateful to Standard Chartered and our existing investors for their continued support and are privileged to now also have the confidence and backing of ICG Strategic Equity. We are very excited to be embarking on our independent future and look forward to delivering on behalf of all our stakeholders.