KKR-backed Avendus to acquire Spark Capital's institutional equities business

KKR-backed financial services firm Avendus has announced its plans to expand its offerings to include institutional equities and capital markets. As part of this, it has executed an agreement with Spark Capital to acquire its institutional equities business, subject to necessary regulatory approvals.

Moneycontrol was the first to report the buyout.

“The transaction has reached the last leg and an official announcement can be expected shortly. The valuation is expected to be around Rs 300 crore,” said one of the sources.

Spark’s institutional equities franchise is home to an 80-member team, catering to 400 plus institutional clients over the last 15 years. The team, led by Ganeshram Jayaraman, will continue to run the business.

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Avendus will be significantly investing to build equity capital market capabilities.

Speaking on the acquisition, Gaurav Deepak, co-founder and CEO, Avendus Capital, said, “Spark has built one of the most respected institutional equities businesses in India, backed by a strong management team, led by Ganeshram. We always want to bring the best to our clients and after careful consideration we have partnered with Spark’s management team. Their focus on knowledge, excellence, talent and doing the right thing resonates very much with our DNA. With this partnership, we will be significantly enhancing our service offerings to our investment banking and wealth clients.”

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Ganeshram Jayaraman, managing director and head, institutional equities, Spark Capital, said, “Avendus, as a knowledge-led financial services firm, is a solid strategic fit to our growth objectives, sectoral strengths and team culture. The institutional equities team is excited by the prospects of working under the Avendus umbrella in its ensuing growth phase and believes that this can catapult us into the next orbit. The entire team remains committed to build this franchise.”

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