MUMBAI: Global private equity firm Warburg Pincus on Saturday said it has agreed to buy 80 per cent stake in Avanse Financial Services, education-focused non-banking financial services company from Dewan Housing Finance and Wadhawan Global Capital Group.
DHFL said it has agreed to sell its entire 30.63 per cent stake in Avanse Financial Services to Olive Vine Investment Limited, an affiliate of Warburg Pincus Group. In addition to the deal, Warburg said, its affiliate plans to infuse Rs 300 crore in Avanse’s equity capital to fund its future growth.
Avanse has also funded 15,000 students across 6,000 courses since its inception in 2013, and currently has assets under management to the tune of Rs 2,900 crore.
“The transaction with Warburg Pincus will allow the company to further strengthen their position in the education financing industry. This sale also unlocks the latent value within the WGC Group, while reinstating our immediate and long-term focus on our core business,” said Kapil Wadhawan, chairman, Wadhavan Global Capital.
DHFL had earlier exited its mutual fund business, selling stake in DHFL Pramareica to its partner Prudential Financial, and sold 70 per cent stake in affordable housing finance company Aadhar Housing to private equity player Blackstone.