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Standard Chartered Spins Out Private Equity Business
ICG is purchasing the unit under a management buyout that forms Affirma Capital, a new private equity firm.
Standard Chartered has sold its private equity business to Intermediate Capital Group in a spin out valued at about £790 million ($998 million).
Funds managed by ICG bought a majority of the private equity assets held on the London-based bank’s balance sheet, according to a statement Monday from ICG. The deal backs the creation of Affirma Capital, a private equity firm owned and run by the former leadership of Standard Chartered's private equity team.
The spin out will allow Standard Chartered to reduce its balance sheet exposure to “principal finance”— an area of its business that includes alternative assets — as part of an effort it announced in 2016, according to a statement Monday from the bank. It will also give ICG the opportunity to expand into Asia, which ICG said is a key region for its growth.