Standard Chartered spins off private-equity arm, sells investment portfolio to UK asset manager Intermediate Capital
- The bank has been reducing the size of its private-equity business since 2016, with an eye towards an eventual exit.
- Bank expects to take a restructuring charge of about US$160 million related to the transaction.
Standard Chartered said on Monday that it would spin off its private-equity business in a management-led buyout and sell most of its private-equity investment portfolio to funds managed by a unit of British asset manager Intermediate Capital Group.
The bank, which is based in London but generates much of its revenue in Asia, has been reducing the size of its private-equity business since 2016, with an eye towards an eventual exit.
Terms of the deal were not released. The transaction is expected to be completed in the first half of 2019.
“The [Standard Chartered Private Equity] team has streamlined the group’s private equity business over the past few years, in line with our stated objectives,” said Simon Cooper, chief executive of corporate, commercial and institutional banking at Standard Chartered. “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.”
Standard Chartered said that it expects to take a restructuring charge of about US$160 million related to the transaction.
The portfolio consists of investments in 35 companies in China, India, Southeast Asia, South Korea, the Middle East and Africa.
Affirma Capital, a newly formed, independent firm owned by members of the management team of Standard Chartered Private Equity, will manage the portfolio for ICG Strategic Equity, part of Intermediate Capital Group.