Intermediate Capital Group unit ICG Strategic Equity Advisors agreed to purchase the majority of Standard Chartered's private equity investment portfolio, backing the spinout of the banking group's private equity business.
The approximately $1 billion deal underpins the spinout of Affirma Capital via a management buyout, an independent business owned and run by members of the management team of Standard Chartered Private Equity, said a regulatory filing by Standard Chartered. This team will manage the investments being acquired by ICG Strategic Equity, said a spokesman for Standard Chartered.
The portfolio consists of investments in 35 firms across Southeast Asia, India, China, South Korea, the Middle East and Africa. At closing, Affirma Capital will have about $3.6 billion in assets under management, which includes the portfolio acquired by ICG Strategic Equity funds and assets run for third-party investors.
The transaction is set to close in the first half of next year.
"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," said Simon Cooper, CEO of corporate, commercial and institutional banking at Standard Chartered, in a news release by the banking group.
A separate news release by ICG said the deal represented the strategic equity unit's first investment in Asia.
ICG said the strategic equity business is also making available to Affirma a new pool of about $400 million in dry powder for new deals and follow-on investments.
Affirma Capital is led by CEO Nainesh Jaisingh.