Carlyle to acquire minority stake in Quest Global; Bain, Advent to exit

Ajit Prabhu, chairman and chief executive officer of Quest Global, will acquire an additional stake in the company

Global investment firm Carlyle will acquire a significant minority stake in Quest Global. Equity for this transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners, the company said in its announcement.

As part of this transaction, current investors Bain Capital and Advent International will exit and Quest Global will repurchase its company shares. Ajit Prabhu, chairman and chief executive officer (CEO) of Quest Global, will acquire an additional stake in the company.

Amit Jain, managing director and head of Carlyle India Advisors, said, "We have known Ajit for two decades and we believe he has demonstrated visionary leadership over these years. Carlyle was the first early-stage private equity investor in Quest Global and we are proud to partner again. We believe the company’s undivided client centricity, drive for engineering excellence, differentiated global delivery model and the entrepreneurial energy of the management team have enabled it to scale successfully across a diverse set of industry verticals."

"Looking ahead, our view is that Quest Global is well-poised to benefit from the growing focus on product innovation, digital engineering, embedded systems, increased outsourcing and disruptive technology advancements across industries. We look forward to working closely with Quest Global's management team while leveraging Carlyle's deep sector expertise and global network to help the company expand its global leadership in the ER&D space."

The transaction remains subject to the satisfaction of certain conditions precedent to closing, including customary regulatory approvals.

Barclays, JP Morgan, BNP Paribas and Latham & Watkins served as advisors to Quest Global on the transaction. Deutsche Bank, Clifford Chance, KPMG and Trilegal served as advisors to Carlyle.

Barclays, BNP Paribas, Citibank, Deutsche Bank, HSBC, ING, JP Morgan, Nomura, Standard Chartered Bank, Allen & Overy and Linklaters helped arrange financing for the transaction.

"It was a great value-added partnership with Carlyle the first time around, and I look forward to working with Carlyle again, to propel us in the journey ahead. Together, I am confident we will deliver on our mutual commitment to provide cutting-edge engineering solutions to our clients around the world while preserving our entrepreneurial culture," said Ajit Prabhu, Chairman and CEO of Quest Global.  

Carlyle has invested over $35 billion of equity in over 280 deals globally as of June 30, 2023, with approximately $5.6 billion of this in Asia.