Intermediate Capital Group’s ICG Strategic Equity has agreed to acquire Standard Chartered’s private equity business in a deal valued at around £790m ($1bn).


Image: Standard Chartered’s head office in London. Photo: courtesy of Standard Chartered.

As part of the deal, the funds managed by ICG Strategic Equity will purchase the portfolio, which includes private equity assets held on Standard Chartered’s balance sheet and managed by Standard Chartered’s private equity team (SCPE).

Standard Chartered corporate, commercial and institutional banking CEO Simon Cooper said: “The SCPE team has streamlined the Group’s private equity business over the past few years, in line with our stated objectives.

“This transaction will see the Group exit the majority of its private equity exposure, and gives the SCPE team an opportunity to pursue an independent future with the backing of ICG Strategic Equity.”

The deal is said to underpin the spin out of Affirma Capital, a new independent private equity firm owned and operated by the management team of SCPE.

The acquired portfolio includes private equity investments in 35 companies located in Southeast Asia, India, China, South Korea, the Middle East and Africa.

As per terms of the deal, Affirma Capital will oversee portfolio acquired by the ICG Strategic Equity funds and the portfolio owned by third-party investors in SCPE’s existing funds.

The terms of the deal, which is expected to be completed in the first half of 2019, have not been disclosed.

ICG CEO Benoît Durteste said: “The success ICG has enjoyed, first in Europe and more recently in North America, has shaped our strategy toward our expanding business in Asia, with Asia’s growing economies creating significant investment opportunities for ICG.”

Separately, Standard Chartered announced that it has secured banking license from the European Central Bank (ECB) under German law.

The license will allow Standard Chartered to operate in the European Economic Area (EEA), after exit of the UK from the European Union (EU).

Standard Chartered AG, a wholly-owned German subsidiary, will offer a range of banking products and solution to the European and global clients following the UK’s expected departure from the EU on 29 March 2019.