Bain Capital to Acquire Stake in Adani Capital, Adani Housing

Bain Capital, an American private investment firm based in Boston, is buying a 90% stake in Adani Capital and Adani Housing. The company is also investing in Adani Capital which is the non-banking financial company (NBFC) of the Adani Group that started its lending business in 2017.

Bain Capital said on Sunday, July 23, that it had signed a deal to acquire 90% of Adani Capital and Adani Housing. The company chose to buy these units out of all the private investments of the Adani family in the company.

Gaurav Gupta, the managing director and chief executive officer of Adani Capital, will retain the remaining 10% stake once Bain Capital acquires the 90%. Then again, even after the sale, Gupta will continue to lead the firm in his current job role, and this was confirmed by the American investment firm.

Reuters reported that Bain Capital committed a $120 million investment for Adani Capital and an additional $50 million liquidity line in the form of Non-Convertible Debentures. The deal is expected to close within the fourth quarter of 2023. Bain said it is aiming to push the NBFC arm of the Adani Group to become a standalone company so it can expand its lending operations.

“Gaurav and the team have built a scale lending business that supports entrepreneurialism and is trying to solve the $300 billion+ unmet retail MSME credit demand in the country,” Bain Capital’s partner, Rishi Mandawat, said in a press release. “The company has strong business fundamentals, an experienced team, with the ability to serve and expand to core segments like agriculture, housing, and to underbanked rural areas.”

He added, “We see compelling opportunities to partner with Gaurav and team to support and facilitate Adani Capital’s next phase of growth by providing access to significant capital, strategic and operating resources, and deep experience partnering with financial services businesses in India and across the globe.”

Photo by: Bain Capital Website