Carlyle repurchases Indian e-publisher

The firm has bought back the 54.85% stake in Newgen it sold previously to fellow private equity groups Aureos, ePlanet and Franklin Templeton PES

Private equity firms continue to invest in the growth of Newgen KnowledgeWorks, an e-publisher headquartered in Chennai.

The most recent investment is once again from The Carlyle Group, which has paid $32 million to buy back its 54.85 percent stake that it sold in 2011 to Franklin Templeton Private Equity Strategy, Aureos’ South Asia Fund and ePlanet Capital in Newgen, according to a statement.

Carlyle originally paid $9.4 million for the majority stake in 2004; the price at which it sold the stake in 2011 was not disclosed at the time.

“We were pleased with Carlyle’s prior investment in Newgen, and we see the same potential for creating value through our latest investment,” Shankar Narayanan, a Carlyle managing director based in India, said in the statement.

Newgen’s executives echoed the sentiment. “We are extremely happy to partner with Carlyle again, which engaged in numerous value creation activities and acted as a catalyst in the growth of the company during its previous stint with Newgen,” said chief executive officer and Newgen founder Prabhakar Ram.

The most recent investment was made from First Carlyle Ventures III (FCVIII), a 2006-vintage vehicle that raised $605 million of its $700 million target, according to PEI’s Research and Analytics division. Limited partners in the fund included California Public Employees’ Retirement System, Richard King Mellon Foundation and the YMCA Retirement Fund.

Carlyle and Newgen did not immediately return requests for comment by press time.