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StanChart to spin-off PE business, sell related investment funds to ICG

Standard Chartered PLC has agreed on conditions for the spin-off of its private equity business, which it envisions happening in the first half of 2019 as part of a management buyout.

The U.K. bank agreed terms for the sale of most of its private equity investment portfolio to funds managed by U.K.-based asset manager Intermediate Capital Group PLC unit ICG Strategic Equity.

The deal underpins a management buyout by Affirma Capital, a new company owned by members of the management team of Standard Chartered Private Equity Ltd., which is part of the group's principal finance business.

Post-transaction, Affirma Capital will manage investment activities and the aforementioned portfolio — made up of private equity investments in 35 companies mainly in Asia and Africa — along with the portfolio owned by third-party investors in SCPE's existing funds.

The deal is expected to incur roughly $160 million in restructuring costs.

Standard Chartered put up its private equity business for sale in May and began talks on a deal with Intermediate Capital Group in August.