Multiples Alternate Asset Management , the private equity fund, has acquired an estimated 40 per cent non-controlling stake in APAC Financial Services for a reported Rs 2.5 billion. APAC Financial Services is involved in financial services for Micro, Small and Medium Enterprise (MSME) segment.
The APAC group started operations in mid-2018 after receiving the requisite licenses related non-banking finance and housing finance from the Reserve Bank of India and from the National Housing Bank, respectively.
With the recent investment from Multiples Alternate Asset Management, the share capital of the APAC group stands at Rs 4 billion.
Renuka Ramnath, Founder and Managing Director, Multiples Alternate Asset Management said, "We have been following APAC’s progress over the last one year and have been impressed with the leadership team’s alignment with the long-term goals of the company by their significant equity investment."
"As a philosophy we continue to back high-quality Promoters and Leadership teams with proven track record and market reputation. With appropriate risk controls and significant digitisation and innovation, this looks like a scalable business model," she said.
Nithya Easwaran, Managing Director at Multiples Equity is set to join the board of directors of APAC.
Gunit Chadha, Founder, APAC Financial Services says, " We wanted to have an institutional partner who provides both financial and intellectual capital to realise our vision. Both Renuka and Nithya have an admirable track-record in financial services and APAC would look to capitalise on their experiences.
"A well-capitalised balance-sheet with low leverage and an experienced leadership team will be differentiating factors for a new-age NBFC in the current market backdrop," he said.