Wadhawan Global Capital (WGC) today announced that they have entered into a definitive agreement with an affiliate of the Warburg Pincus Group to sell its stake in its education finance subsidiary, Avanse Financial Services limited. As a part of the deal, WGC will be selling the entire 49.04% of its stake in the company. DHFL, a WGC group company which holds 30.63% stake in Avanse, will also be exiting the company as a part of the transaction. Ernst & Young LLP (EY) and Prime Research & Advisory Limited were the financial advisors to the company and the sellers on the transaction. Shardul Amarchand Mangaldas & Co acted as the legal advisors to the sellers and company on this transaction.
Avanse Financial Services Limited is a new age, leading education focused niche NBFC which is an associate enterprise of Wadhawan Global Capital limited (WGC). With its new age, flexible and tailored financial solutions, Avanse addresses higher education needs of the Indian youth enabling them to ‘Aspire without Boundaries’.
Commenting on the development, Kapil Wadhawan, Chairman, WGC said, “We have built Avanse as a leading education focused NBFC, that has empowered Indian youth in their quest for quality education and a better future.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 .”
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $43 billion in private equity assets under management. The firm’s active portfolio of more than 180 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value.