Bain Capital and Advent in talks to offload stake in Quest Global

23 Aug 2022 , 11:14 AM

As per sources familiar with the situation, private equity firms Bain Capital and Advent International are planning to exit Quest Global Services six years after investing in the engineering outsourcing business.

The two funds hold around a 33% stake in the firm. GIC, a Singapore investment firm with a 2-3% stake, may also join the private equity firms in stake sale.

JP Morgan and Barclays are launching a formal share selling procedure exclusively for financial investors, which is likely to begin in the coming weeks.

The number of shares up for sale will be determined by transaction negotiations and may involve the main fundraising as well.

Bain and Advent’s plans to sell stake were accelerated after previous attempts to list the firm in India or the United States failed due to a global catastrophe in technology stock valuations.

Last year, ChrysCapital and True North were part of an investor consortium that acquired less than a 10% stake in the firm for $1.8 billion. They are not yet planning to sell off their stake in the company.

According to the sources stated above, the business is expecting a $2.5-3 billion value for this round. That is around 20 times the FY23 EBITDA.

However, as per the sources, the company has claimed the above stated information to be both incorrect and speculative and issued no further clarifications on the same.