Private equity firms Baring Private Equity Asia and ChrysCapital have agreed to purchase a 90% stake in Indian mortgage lender HDFC’s education finance arm for $1.11 billion, marking the largest private equity buyout in the country’s financial services sector. HDFC Credila Financial Services’ pre-money valuation is $1.27 billion, and the investors will infuse $270 million into the company. Baring and ChrysCapital hope to benefit from India’s middle class and increasing numbers of students taking loans to study overseas. With a growing appetite for overseas education, Indian students studying abroad increased by 68% to 750,365 in 2022, and they are expected to spend $75-80 billion on foreign education in 2024, according to Credila’s annual report. The RBI and Competition Commission of India will have to approve the transaction.
Baring and ChrysCapital Acquire Majority Stake in HDFC’s Education Financing Arm
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