Advent International to acquire up to a 10% per cent stake in YES BANK
MUMBAI, July 29, 2022 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has agreed to acquire up to a 10% per cent equity stake in YES BANK (“Bank”), the sixth largest private sector bank in India, as part of an overall $1.1 billion capital fundraise by the Bank.
The capital raised will bolster the capital adequacy of the Bank, thereby providing growth capital for the core business of the Bank. Once approved, this would be one of the largest private equity investments in the Indian banking sector.
This equity stake in YES BANK will be Advent’s first investment in a banking entity in India and Advent will have one nominee on the Bank’s Board following the transaction.
Commenting on the investment, Ms Shweta Jalan, Managing Partner at Advent, said, “We believe India’s banking sector is at an inflection point where tech-enabled banks like YES BANK have an advantage. This investment also demonstrates our commitment to the country’s banking and financial services industry, which is the core of India’s growth story. We think the Bank’s leadership team, led by Prashant Kumar, has done great work in reviving its performance over the last two years. We look forward to working with the Bank and to drawing on our sector expertise in supporting YES BANK in its next phase of sustained growth.”
Mr. Prashant Kumar, Managing Director & Chief Executive Officer, YES BANK said, “We are extremely pleased to onboard such pedigreed investors like Carlyle and Advent International as our partners, in fulfilling the long-term strategy of the Bank. This is a testimony to the inherent strength of the bank’s franchise. We are excited about the incremental opportunities that this partnership creates for us and confident that both the investors will play a crucial role in the next growth phase of the Bank.”
Headquartered in Mumbai, YES BANK is a Full Service Commercial Bank providing a range of products, services and technology driven digital offerings, catering to corporate, MSME and retail customers. Founded in 2004, it has a strong Pan India footprint with over 1,140 branches across all 28 states and 9 Union Territories in India. It also operates investment banking, merchant banking and brokerage businesses through YES Securities. The banks shares are listed on the National Stock Exchange and Bombay Stock Exchange.
Advent has been investing in India since 2007 and founded its Mumbai office in 2009. Currently, it has invested/committed almost $2.9 billion across 13 companies in sectors such as financial services, consumer products, healthcare, industrial and technology. Previous financial services investments include Aditya Birla Capital (a holding company for the financial services businesses of Aditya Birla Group) through which Advent has exposure to lending, asset management and insurance amongst others, and ASK Investment Managers Private Limited (a leading portfolio management service provider, real estate investment manager and wealth manager in India). New investments in the last twelve months include Eureka Forbes Ltd (health and safety solutions provider, with a presence in water purification, vacuum cleaning and other emerging categories), Encora (a global digital engineering services company specializing in software product development services for fast-growing enterprises and digitally-native companies) and Avra Labs (contract manufacturing and research services and specialty active pharmaceutical ingredients manufacturer).
Globally, Advent has invested over US$12.5 billion across 82 companies in business and financial services. Previous investments in banks include Addiko Bank (a universal bank operating in South Eastern Europe), Nubank (the largest independent digital bank in the world and based in Brazil) and Grupo Financiero Mifel (a leading Mexican mid-sized bank serving the retail segment and small and medium-sized companies).
The transaction is subject to closing conditions and relevant statutory and regulatory approvals.
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 390 private equity investments across 41 countries, and as of March 31, 2022, had $75.9 billion in assets under management. With 15 offices in 12 countries, Advent has established a globally integrated team of over 265 private equity investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology. For over 35 years, Advent has been dedicated to international investing and remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
About YES BANK
YES BANK is a ‘Full Service Commercial ‘Bank’ providing a complete range of products, services and technology driven digital offerings, catering to Retail, MSME as well as corporate clients. YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES, a wholly owned subsidiary of the Bank. Headquartered in Mumbai, it has a pan-India presence including an IBU at GIFT City, and a Representative Office in Abu Dhabi.
For more information, please visit the Bank’s website www.yesbank.in
For further information, please contact:
YES BANK | Neha Chandwani