InvestorQ : Why is KKR planning to sell out of Avendus, which is doing quite well?
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Why is KKR planning to sell out of Avendus, which is doing quite well?

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Neelam Naik answered.
3 weeks ago
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Avendus Capital may soon be on the sale block as its 60% investor, Kohlberg Kravis Roberts (KKR), plans to exit its stake in Avendus Capital. KKR is targeting a valuation of $500-600 million, although final numbers are not available. This deal will mark one of the largest exits by KKR from an Indian financial services company. Apart from KKR, a handful of other investors may also look to sell their stake in Avendus. This would be the second largest exit for KKR after it raised Rs9,000 crore from the sale of Max Healthcare.

While KKR will sell its 6)% stake, another 15% may be sold as part of the deal. The mandate is handled by Nomura India and it will shortlist the bidders for Avendus. While KKR continues to be positive on the Indian market, they want a more domestic focused company to come in and leverage on the expertise built by Avendus. KKR had bought a majority stake in Avendus Group in November 2015 for $120 million. Avendus recently made a big foray into the institutional business with the acquisition of institutional equities business of Spark.

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