Bain Capital to take majority stake in Adani Capital and Adani Housing

Bain Capital, a major international private investment company, has declared that it is set to acquire 90% of both Adani Capital and Adani Housing. This move will take over all the private investments made by the Adani family in these firms. The current Managing Director and CEO, Gaurav Gupta, is to maintain his position, retaining his share in the enterprise.

Further, Bain Capital has pledged an additional $120 million in primary capital to sustain the businesses’ ongoing expansion. Alongside this, a liquidity line of $50 million in the form of Non-Convertible Debentures has been offered to the company by Bain Capital.

“Gaurav and his team have established a large-scale lending venture aimed at backing entrepreneurship and addressing the over $300 billion unfulfilled retail MSME credit demand in India,” stated Rishi Mandawat, a Partner at Bain Capital. He applauded the company’s robust business fundamentals, the seasoned team, and their capability to serve and broaden core sectors like agriculture and housing, including service to the underbanked rural areas.

Gautam Adani, Chairman of Adani Group, expressed his pleasure over Bain Capital’s investment, projecting it as a crucial step that would boost the business’s growth. Gaurav Gupta voiced his gratitude towards Gautam Adani for his support and faith in him. He acknowledged the team’s efforts in providing affordable finance to their customers while emphasizing the importance of customer literacy and education.

Micro, Small & Medium Enterprises (MSMEs), forming approximately 30% of India’s gross domestic product, face a significant shortage of credit sources, especially in rural areas. Established in 2017, Adani Capital has aimed to democratize access to affordable, convenient lending solutions to support the next generation of MSMEs and entrepreneurs in India.

In this deal, Avendus Capital served as the exclusive financial advisor to Adani Capital and Adani Housing Finance and their shareholders, while Rothschild advised Bain Capital.

With substantial experience in investing in diversified financial services businesses, Bain Capital has supported the growth and leadership of companies such as Axis Bank, 360One, Judo Bank, L&T Finance Holdings, Legacy Corporate Lending, and more. The transaction is projected to be finalized in the fourth quarter of 2023, subject to the necessary regulatory and market approvals.