Carlyle Group sells Peru-based cash management company Hermes to CVC Fund VII

Hermes sold to CVC Fund VII for an enterprise value of approximately $400 million

Global investment firm The Carlyle Group has sold its stake in Hermes Transportes Blindados S.A. to CVC Fund VII for an enterprise value of approximately $400 million. The transaction closed on January 7, 2020 after CVC Fund VII launched a tender offer on December 3, 2019. Carlyle invested in Hermes through its Carlyle Peru Fund and Carlyle South America Buyout Fund in 2015.

Based in Lima, Peru, Hermes is a leading provider of cash management services with a nationwide network of 18 branches, 228 armored vehicles and over 3,700 employees. The company offers valuable logistics, cash processing and custody services to a blue chip client base comprised of more than 1,000 active clients in the financial, retail, utilities and mining segments. Hermes is a mission critical partner to the largest financial institutions and retail organisations in Peru.

Eduardo Ramos, Managing Director and Head of the Carlyle Peru Advisory Team, said, “During our four-plus years of ownership, we are proud to have helped Hermes grow by identifying new revenue streams, increasing operational efficiencies and entering new business segments. We’re confident the company is well positioned for continued growth over the long-term.”

Sebastian Barriga, Director of the Carlyle Peru Advisory Team, added, “It has been a privilege to work alongside Hermes’s world-class management team. Together, we have created long-term value by pursuing both organic and inorganic growth opportunities and are proud of the work Hermes has done to advance the cash management industry in Peru. We look forward to their continued success.”

Mirella Velasquez, CEO of Hermes, said, “Eduardo and the Carlyle team have been outstanding partners. Today’s announcement underpins the continued success of our company. We are extremely proud of our team and look forward to continuing to develop the cash management industry in Peru.”

Jean-Marc Etlin, Partner overseeing CVC Capital Partner’s Latin America private equity business said, “This is a unique opportunity to invest in a company with an outstanding track record and proven business model. We are very impressed with the quality of the management team and their ability to continue generating significant value for shareholders. We are looking forward to continuing to support the company and its talented management team in its next phase of growth.”

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Blackstone completes the acquisition of €1 billion majority stake in Luminor

Blackstone

Luminor announced today the acquisition of a 60% majority stake in the bank by a consortium led by private equity funds managed by Blackstone. The bank’s current owners, Nordea Bank Abp (“Nordea”) and DNB BANK ASA (“DNB”), will each retain a 20% equity stake in Luminor.

The consortium, which includes a wholly-owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”), as well as other co-investors, has now completed the transaction having received the relevant approvals.

Nordea and DNB will continue to support the bank with long-term funding, expertise and on-going representation on the Board of Directors. Blackstone has agreed with Nordea to purchase their remaining 20% stake over the coming years.

Blackstone was uniquely positioned to manage this complex acquisition, and is well-placed to support Luminor and the wider Baltic economy going forward.

Nadim El Gabbani, Senior Managing Director at Blackstone, said: “We are excited by the long-term partnership with management, Nordea and DNB and look forward to working together to create a stronger platform to further economic growth in the Baltics. We will continue to support local businesses and strongly believe that Luminor is well-positioned to continue to lead the market as an independent provider of financial services.”

Nils Melngailis, Chairman of the Supervisory Council of Luminor, said: “The Baltics benefit from a strong macroeconomic climate and a stable operating environment, and are among the most dynamic economies in the European Union. This transaction represents one of the largest investments in Baltic history and I would like to acknowledge the efforts of the regulators in the approval process and our teams in completing the transaction. I look forward to our strategic partnership with Blackstone.”

Erkki Raasuke, CEO of Luminor, said: “Blackstone is an ideal partner for Luminor as it undertakes one of the most extensive corporate transformations in the Baltics. Their demonstrable track record in transformations, strong financial standing and network of global talent will support Luminor in growing as the largest local independent bank; a bank which will be dedicated to supporting sustainable growth of the Baltic region by providing long-term commitment to businesses and individuals.”

For more information, please contact:

Blackstone
Ramesh Chhabra
+44 (20) 7451 4053
Ramesh.Chhabra@Blackstone.com

Luminor
Ivi Heldna
+372 52 31 192
Ivi.Heldna@luminorgroup.com

About Luminor
Luminor was established as an independent Baltic bank in autumn 2017, built on the Baltic businesses of Nordea and DNB and combining the experience and knowledge from the Nordic countries. We are the third-largest provider of financial services in the Baltics, with approximately 1 million clients, 2,500 employees, and a market share of 16.4% in deposits and 20.2% in lending as at the end of the second quarter of 2019. Total shareholders’ equity amounts to €1.6 billion and Luminor is capitalised with a CET1 ratio of 18%. On 13 September 2018, Moody’s assigned Luminor long and short-term, foreign and local currency deposit ratings of Baa1/Prime-2.

About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies in which we invest, and the communities in which we work.  We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with $545 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis.  Further information is available at www.blackstone.com.  Follow Blackstone on twitter @Blackstone.

About ADIA 
Established in 1976, ADIA is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation.  ADIA has invested in private equity since 1989 and has built a significant internal team of specialists with experience across asset products, geographies and sectors. Through its extensive relationships across the industry, the Private Equities Department invests in private equity and credit products globally, often alongside external partners, and through externally managed primary and secondary funds. Its philosophy is to build long-term, collaborative relationships with its partners and company management teams to maximize value and support the implementation of agreed strategies. For more information: https://www.adia.ae

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Krungsri joins forces with international private equity consortium to strengthen its microfinance platform

Krungsri joins forces with international private equity consortium to strengthen its microfinance platform

20 Nov 2018

Move to bolster microfinance arm providing affordable credit and insurance solutions

Krungsri (Bank of Ayudhya Public Company Limited) has announced that it will sell a 50% stake in its wholly-owned Ngern Tid Lor Company Limited (“NTL”) business unit to an international private equity consortium led by CVC Capital Partners Asia Fund IV (“CVC”) and Equity Partners Limited (“EPL”). The move is expected to bolster the microfinance arm of Krungsri, which provides affordable credit and insurance solutions to Thailand’s underbanked and self-employed population.

Sharing his thoughts on the investment Schwin Chiaravanont, EPL’s partner, states, “On behalf of EPL, we are excited to partner with CVC and Krungsri in this landmark deal in the Thai financial services industry. NTL is not only a high-quality growth asset, but it also represents a strong reflection of our values in corporate culture and governance and we support the ambition to ameliorate conditions for Thailand’s underbanked communities.”

Brian Hong, Partner and Co-Head of Southeast Asia at CVC, said of the transaction, “We are tremendously pleased to be partnering with Krungsri and NTL. We are firm believers in the dynamic and passionate culture of service which has fuelled impressive growth and innovation at NTL. We are excited to be able to support the company in realising new opportunities and achieving its full potential.”

Piyasak Ukritnukun, Managing Director of NTL, commented, “Our new shareholders bring with them a combination of global expertise and local strength. We hope to benefit from new technologies, operational best practices and business development opportunities to help us better serve Thailand’s long-tail segment.”

“This is a significant transaction for Krungsri. We are confident that the CVC and EPL consortium is the right partner to help bring NTL to the next level and allow us to explore potential synergy with the consortium.” said Dan Harsono, Krungsri Head of Retail and Consumer Banking.

This transaction is subject to satisfactory completion of conditions precedent and regulatory filings. Krungsri appointed ING Bank N.V. as exclusive financial advisor on this transaction.

NTL is a privately-held market leading title loan operator that was acquired by Krungsri in 2009. As at the end of 2017, the company operated 750 branches across 74 provinces and had an outstanding loan portfolio of THB 24.6bn.

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