Intermediate Capital Group has backed the long-awaited spin-out of Standard Chartered’s private equity team in a £790 million ($996 million; €878 million) deal.
The firm’s Strategic Equity secondaries unit has agreed to acquire the majority of the London-headquartered bank’s private equity portfolio held on its balance sheet. The deal sees the PE team renamed as Affirma Capital, according to a statement.
The deal, which involves stakes in 35 companies across South-East Asia, India, China, South Korea, the Middle East and Africa, is expected to close in the first half of next year.
ICG has also committed £316 million to Affirma for new deals and follow-on investments.
Nainesh Jaisingh, Standard Chartered Private Equity’s former head, will lead Affirma.
ICG is expanding its business in Asia and the region’s growing economies create “significant investment opportunities” for the firm, chief executive Benoit Durteste said in the statement.
It is understood Credit Suisse advised on the deal.
Standard Chartered said in 2015 it would reduce its private equity business over the next two years and focus on selected investments. In November last year the PE unit renewed its spin-out plan and was expecting backing from financial sponsors and asset management platforms where there is “complementarity with the unit”, a source with knowledge of the matter told Private Equity International.
When the deal closes Affirma will have £2.85 billion in assets under management, according to the statement. This includes the ICG-acquired portfolio and assets managed for third-party investors in SCPE’s Marina and Korea Funds.
ICG is seeking $1.6 billion for its latest secondaries fund, Strategic Equity Fund III, according to SI data. The firm has raised around $1.3 billion in a first close set for this month, as sister publication Secondaries Investor reported on Wednesday.