Private Equity

Liquidity Events

JC Flowers to buy Eight Capital's residual stake in ARC unit

Economic Times  

JC Flowers & Co will acquire fellow PE investor Eight Capital's entire stake in JC Flowers Asset Reconstruction Company (ARC). Eight Capital has already sold 22% in the ARC to the US private equity firm for INR 50 crore. JC Flowers will now buy the balance 10% that Eight Capital holds for INR 60 crore. JC Flowers ARC was a three-way joint venture, with Eight Capital initially having a 35% stake. London-based hedge fund Emso Asset Management holds 15% and JC Flowers & Co holds the remaining 50%. After the ARC made a rights issue three months ago, Eight Capital's stake fell to 32% as the fund did not subscribe to its share. Yes Bank approved the sale of its INR 48,760 crore distressed loan portfolio to JC Flowers ARC after the latter emerged as the highest bidder at an uncontested Swiss auction that concluded on September 7. As part of the deal, Yes Bank will acquire a 20% stake in the ARC by infusing INR 350 crore as capital.