Everstone Capital, a private equity firm, has said it will invest Rs 200 crore in Hinduja Leyland Finance (HLF), a commercial vehicle financing arm of the Hinduja Group. HLF is an unlisted non-banking finance company (NBFC) headquartered in Chennai and jointly owned by Ashok Leyland and other entities of the Hinduja Group. It has assets under management of over Rs 4,000 crore.

The Rs 200-crore investment will be made from Everstone’s second private equity fund called Everstone Capital Partners-II, a $580-million fund domiciled in Mauritius.

The investment is likely to result in Everstone taking a equity exposure of less than 20 per cent in the NBFC, it is learnt.

“We see financial services as an important catalyst to economic growth. We invested in Hinduja Finance as this NBFC is a fast growing company and has strong track record in retail financial services,” Dhanpal Jhaveri, Partner and Chief Executive Officer, Everstone Capital told Business Line .

Atul Kapur, Co-founder and Managing Partner of the Everstone Group said Everstone was excited to partner with the Hinduja Group, which had built up an attractive and professionally-managed business. EY and Spark Capital were the advisors to the transaction.

For Everstone, this transaction will be the second in the financial services space. It already has an investment in IndoStar Capital Finance, a non-banking finance company engaged in wholesale financing. IndoStar Capital has leading private equity firms as its sponsors, including Everstone, Goldman Sachs and Ashmore.

srivats.kr@thehindu.co.in

Related Topics