Bain Capital to acquire 90% stake of Adani Capital, Adani Housing

Bain Capital, a prominent global private equity firm, has recently made a significant move by entering into a definitive agreement to acquire 90 percent of Adani Capital and Adani Housing. This transaction marks the buyout of 100 percent of the Adani family's private investments in the company, with Gaurav Gupta, the Managing Director and CEO, fully retaining his stake in the business.

To facilitate the ongoing growth of the company, Bain Capital has committed $120 million in primary capital. In addition, the firm is immediately providing a liquidity line of $50 million in the form of Non-Convertible Debentures to Adani Capital.

Rishi Mandawat, a Partner at Bain Capital, expressed admiration for Gaurav and his team's achievements in building a scale lending business that addresses the substantial unmet retail MSME credit demand in India, which amounts to over $300 billion. He sees compelling opportunities to partner with Gaurav and the team to support Adani Capital's next phase of growth. Bain Capital will bring significant capital, strategic and operating resources, and vast experience in partnering with financial services businesses in India and across the world.

Gautam Adani, Chairman of Adani Group, praised Gaurav Gupta for his entrepreneurial spirit and contribution to both Adani Capital and the Adani Group. He expressed his delight in having a credible investor like Bain Capital stepping in, believing it will foster substantial growth for the business.

Gaurav Gupta himself shared his appreciation for Gautam Adani's support and trust in him since his investment banking days. He highlighted the achievements of Adani Capital in providing affordable finance and support to micro-entrepreneurs and first-time homeowners in India, particularly in rural areas. Gaurav expressed excitement in welcoming Bain Capital as a partner who shares their vision and commitment to making affordable finance accessible to their customers while focusing on customer literacy and education. With the infusion of Rs 1,000 crore in capital from Bain Capital, Adani Capital is poised to grow fourfold from its current standing.

The rise of MSMEs and growing consumption rates in India have led to increased demand for credit, with MSMEs contributing about 30 percent of the country's gross domestic product. However, only a mere 10 percent of these businesses have access to formal credit sources, creating a significant gap that Adani Capital aims to address. Founded in 2017, Adani Capital has established itself as a provider of affordable and convenient lending solutions for the next generation of MSMEs and entrepreneurs in India, boasting an impressive AUM of nearly $500 million, a widespread network of over 170 branches in eight states, and a team of over 2,500 professionals, all driven by a strong customer-centric culture.

Avendus Capital acted as the exclusive financial advisor to Adani Capital, Adani Housing Finance, and their shareholders in this transformative deal. Meanwhile, Rothschild served as the exclusive financial advisor to Bain Capital.

Bain Capital's extensive experience in investing and supporting the growth of diverse financial services businesses in India and globally, including renowned entities such as Axis Bank, 360One (formerly known as IIFL Wealth), Judo Bank, L&T Finance Holdings, and Legacy Corporate Lending, further solidifies its position as a key player in the financial services industry. With this strategic acquisition, Bain Capital aims to continue fostering growth and leadership in the sector while empowering more MSMEs and entrepreneurs in India with access to essential financial services.