Standard Chartered PLC has put its private equity assets, valued at $1.5 billion, up for sale and it is planning to spin off Standard Chartered Private Equity Ltd.'s team of 55 in Singapore as an independent business, Bloomberg News reported May 10, citing people with knowledge of the discussions.
The U.K.-based lender has proposed that the existing managers, led by Nainesh Jaisingh, start a separate entity to manage Standard Chartered's private equity interests, as well as other third-party funds worth $2.1 billion, the sources said.
Credit Suisse Group AG is already pitching the sale to potential investors, which include Asian buyout firms, after they received "teaser" documents from Standard Chartered in March, the newswire reported.
Meanwhile, Standard Chartered has told potential suitors that it will complete in 2018 the sale of real estate assets worth $700 million, for which it has a provisional agreement with U.K.-based private equity firm Actis LLP, Bloomberg's sources said.
In March, Bloomberg reported that Jaisingh and the current management of the private equity business were also looking to buy the assets in partnership with other firms.
Standard Chartered has been planning an exit from private equity since a failed management buyout led by then-Standard Chartered Private Equity CEO Joseph Stevens and on account of the losses incurred by the business since 2015 owing to a fall in oil prices, the newswire reported.