Advent International: Driving Transformational Growth in India with
Sectoral Depth and Global Reach
Advent
International, one of the largest and most experienced global private equity
investors, has significantly deepened its presence and impact in India since
its first investment in 2007 and the establishment of its Mumbai office in
2009. With a disciplined, sector-focused approach, Advent has committed
approximately $6 billion across 18 investments in India, targeting high-growth
sectors such as business and financial services, healthcare, industrial,
retail/consumer, and technology. The firm differentiates itself through its
hands-on "partnership approach," leveraging deep sub-sector
expertise, a vast network of operating partners, and a focus on
transformational growth. Its successful exits from companies like Crompton
Greaves Consumer Electricals underscore its ability to generate substantial
returns, solidifying its position as a leading force in India's private equity
landscape.
I. Firm Overview & Strategy
Advent International, founded in 1984, is a globally
recognized private equity firm with a long history of international investing.
As of December 31, 2023, Advent had $94 billion in assets under management
(AUM) globally, having invested in 420 private equity investments across 43
countries. The firm operates with 15 offices in 12 countries, including a
robust presence in India.
A. Global & Regional Presence: Advent
International made its first investment in India in 2007 and subsequently
established its Mumbai office in 2009. This move solidified its commitment to
tapping into India's growth story. The India team is an integral part of
Advent's globally integrated network, allowing it to leverage its extensive
global experience and local market knowledge. Shweta Jalan, Managing Partner
at Advent, highlights that "Advent India advises on local market
opportunities, based on our deep and extensive knowledge of the
micro-characteristics of Indian companies operating across our core
sectors."
B. Investment Philosophy & Strategy: Advent's
investment philosophy in India is centered on "investing in growth at
scale," with a deep focus on industries and a flexible approach to deal
structure. The firm is "not constrained by size of equity check" or
"structure of deal," allowing it to pursue complex and growth equity
deals, including public-to-private transactions and carve-outs from
multinational corporations. Their approach is about "unlocking growth
through transformation."
Key aspects of their strategy include:
- Investment
Focus: Advent invests across five core sectors globally, with a strong
emphasis on these within India:
- Business
& Financial Services: A significant area of investment, with
approximately $1.2 billion committed across 6 transactions in this
sector in India. Notable investments include YES Bank (largest private
equity investment in Indian banking sector at the time of investment),
Aditya Birla Capital, KreditBee (digital lending), ASK Investment
Managers, and Svatantra Microfin (microfinance). Prashant Kumar, MD
and CEO of YES Bank, noted Advent's global investment experience
supports their vision to be a leading digital bank in India.
- Healthcare:
A key sector benefiting from India's growing demand for healthcare
services. Investments include Apollo 24/7, Suven Pharmaceuticals, Cohance
Lifesciences (formerly RA Chem Pharma Limited), and Bharat Serums and
Vaccines (BSV). Advent aims to identify and partner with businesses that
"focus on delivering improved patient outcomes, exhibit a clear
value proposition to customers, and expand patient access to care."
- Industrial:
Targeting the rapidly evolving industrial sector, influenced by
megatrends like digitization and the green energy revolution.
- Retail,
Consumer, and Leisure: Investing in consumer brands and services,
aiming to "work with brands that are consumer-centric in their
approach." Investments include Eureka Forbes and DFM Foods.
- Technology:
Supporting visionary management teams to scale their businesses into
future platforms, recognizing technology's pervasive impact across all
sectors. Investments include Tredence.
- Investment
Stage: Advent's flexibility allows it to participate in various deal
types, including growth equity, leveraged buyouts, public-to-private
deals, and corporate carve-outs. They back founders and also focus on
transforming existing businesses.
- Value
Creation Strategy: Advent employs a highly collaborative and
operational approach to value creation, aiming to build "sustainable
value and growth." Their goal is to create "stronger, more
valuable companies that operate sustainably, even after we've exited."
This involves:
- Tailored
Value Creation Plans: Working with portfolio company leadership on
bespoke plans from the outset.
- Operating
Partners & Operations Advisors: Leveraging a broad network of more
than 200 Operating Partners and Operations Advisors (including over
130 in-house sector specialists) who provide specialized sector and
operational guidance.
- Portfolio
Support Group: A dedicated in-house team that advises management
teams on informed decisions, catalyzes value creation through
"100-day plans," and provides in-depth knowledge in areas like
AI and talent acquisition.
- Strategic
Growth & Transformation: Supporting companies in areas like
international expansion (e.g., EBANX-YES Bank partnership), and
significant business repositioning.
- People-First
Approach: Focusing on the talent running businesses, governance
constructs, and company culture.
C. Fund Structure & Capital Sources: Advent
raises large, globally diversified private equity funds. Its flagship fund, Global
Private Equity (GPE) program, is rooted in a consistent strategy. For
instance, Advent is currently seeking $26 billion for Advent International
GPE XI, targeting a first and final close in June 2025. This significant
capital base allows for large-scale investments and long-term commitments.
II. Investment Activity & Portfolio
A. Deal Volume & Value: Since its inception in
India in 2007, Advent has committed approximately $6 billion across 18
investments. This substantial deployment highlights its aggressive and
consistent investment pace in the Indian market.
B. Key Investments (Examples):
- Svatantra
Microfin: A recent (March 2024) investment of $230 million
(alongside Multiples Private Equity), marking the largest private equity
investment in India's microfinance sector.
- YES
Bank: A significant investment that marked Advent's first banking
entity investment in India and was the largest private equity investment
in the Indian banking sector at the time (December 2022), helping to
bolster its capital adequacy.
- Crompton
Greaves Consumer Electricals: A major investment in the consumer
durables sector.
- KreditBee:
A leading digital lending company, demonstrating Advent's focus on the
growing fintech space.
- Suven
Pharmaceuticals: An investment in the healthcare sector.
- Tredence:
A data science and AI engineering company, reflecting Advent's focus on
technology.
- Eureka
Forbes: A prominent investment in the consumer products sector.
- Bharat
Serums and Vaccines (BSV): A key investment in the
pharmaceutical/healthcare sector.
C. Portfolio Diversity: Advent's Indian portfolio is
well-diversified across its five core sectors, offering exposure to India's
strong domestic consumption, financialization, healthcare expansion, industrial
growth, and technological advancements. This diversification aligns with its
strategy of identifying and investing in resilient businesses.
D. Co-investments: Advent frequently co-invests with
other reputable firms, such as Multiples Private Equity (in Svatantra Microfin)
and other partners, leveraging shared expertise and capital for larger, more
impactful deals. The firm also facilitates strategic partnerships between its
portfolio companies, as seen with EBANX and YES Bank to amplify cross-border
commerce in India.
III. Exits & Returns
Advent International has a strong track record of successful
exits in India, demonstrating its ability to generate compelling returns
through strategic divestments.
A. Exit Volume & Value: Advent has actively
monetized its Indian investments, with a focus on maximizing value. The firm
engages in structured exit processes, often leveraging public market
opportunities.
B. Key Exits (Examples):
- Crompton
Greaves Consumer Electricals: Advent successfully divested its entire
5.36% stake for over ₹1,348 crore (approx. $162 million) through
multiple open market transactions in June 2021. Prior to this, it had also
divested significant stakes in November 2020 and February 2021, showcasing
a multi-tranche exit strategy.
- Other
investments that have been exited or partially divested globally (and some
with Indian connections) include various companies across its core
sectors, reflecting a disciplined portfolio management approach.
C. Return Profile (IRR & MOIC): While specific
aggregate IRR and MOIC figures for Advent's India exits are not publicly
disclosed, the significant value realized from exits like Crompton Greaves
underscores healthy returns. Advent's overall firm performance, with a
substantial global AUM and consistent fundraising, indicates a strong track
record of delivering returns to its LPs. The firm aims for "sustained
revenue and earnings growth for its portfolio companies" to deliver value.
D. Exit Strategies: Advent primarily utilizes public
market transactions (block deals and open market sales) for its listed holdings
in India. They also consider strategic sales to corporate buyers for unlisted
assets, carefully timing divestments to optimize value realization. Their
approach is to build companies that are valuable and sustainable "even
after we've exited."
IV. Operational & Value Creation Capabilities
A. India Team & Expertise: Advent International
has a dedicated and experienced team in its Mumbai office, including Managing
Partner Shweta Jalan, and other senior investment professionals like Sahil
Dalal and Pankaj Patwari (Managing Directors), and Akshay Alladi
(Senior Director). This team possesses deep local market insights and
sector-specific knowledge.
B. Operational Support & Governance: Advent's
"Partnership Approach" is central to its value creation model. They
work "in lockstep with our leadership teams, entrepreneurs, and
founders" to collectively institute processes that drive value. This
includes:
- Dedicated
Portfolio Support Group (PSG): An in-house team that provides
specialized expertise and hands-on support in areas such as strategy,
M&A, operations, talent acquisition, and digital transformation,
including the adoption of artificial intelligence.
- Operating
Partners & Advisors: Leveraging a vast network of experienced
industry executives (over 200 globally) who provide strategic guidance and
operational expertise.
- Tailored
Approach: Developing a bespoke value creation plan for each portfolio
company, based on a deep understanding of its sector, region, and unique
organizational needs.
- Good
Governance: Ensuring strong governance frameworks and supporting
management teams in executing long-term plans.
C. Network & Ecosystem: Advent's global platform
provides its Indian portfolio companies with access to international best
practices, market intelligence, and a network of industry experts and potential
partners worldwide. This global reach is crucial for companies looking to scale
beyond India's borders.
V. Market Perception & Reputation
A. Industry Standing: Advent International is highly
respected in the Indian private equity community as a disciplined,
deep-pocketed, and operationally focused investor. Its reputation for strong
partnerships, consistent value creation, and successful exits has made it a preferred
partner for large corporations, family-owned businesses, and entrepreneurs.
B. ESG (Environmental, Social, Governance) Integration:
Advent has a strong commitment to responsible investment, integrating ESG
considerations into its investment process and aiming to build companies that
operate sustainably. They emphasize social impact through investments like
Svatantra Microfin, which focuses on financial inclusion for women
entrepreneurs.
C. Challenges & Criticisms: Like any global firm,
Advent navigates the complexities of India's regulatory environment and the
competitive landscape for high-quality assets. Its large fund sizes require
disciplined deployment and continuous identification of scalable opportunities.
VI. Competitive Landscape & Differentiators
A. Competitive Positioning: Advent International
differentiates itself in the Indian market through:
- Global
Scale with Local Depth: Combining a vast global capital base and
international expertise with deep local market knowledge and a dedicated
team.
- Sectoral
Specialization: A rigorous, thesis-driven approach across its five
core sectors, allowing for precise deal sourcing and value creation.
- Operational
Rigor: A highly hands-on and structured approach to improving
portfolio company performance through its PSG and Operating Partner
network.
- Flexible
Investment Mandate: Ability to pursue various deal types, including
large buyouts, growth equity, and complex carve-outs.
- Long-Term
Partnership Mindset: Focused on building sustainable businesses that
thrive beyond Advent's ownership.
B. Future Outlook: Advent International remains
highly optimistic about India's growth prospects. The firm plans to increase
its deployment activity in Asia-Pacific, including India, as it continues to
raise significant capital for its flagship funds. It sees ongoing opportunities
in its core sectors, driven by India's demographic dividends, economic reforms,
and increasing consumption.
VII. Overall Assessment
A. Key Strengths: Advent International's
primary strengths in India include its substantial global capital and
integrated international platform, its deep sector expertise that enables
precise investment theses, and its highly effective operational value creation
capabilities. The firm's ability to execute complex transactions, drive
fundamental business improvements, and consistently deliver strong returns
through strategic exits makes it a formidable force in the Indian private
equity market. The experienced local team and commitment to long-term,
sustainable growth further enhance its competitive edge.
B. Key Weaknesses/Areas for Improvement: As the
Indian market matures and competition for quality assets intensifies, Advent
will need to maintain its disciplined approach to valuations and continue
identifying unique sourcing opportunities. Effectively integrating and
leveraging its global operating resources across a diverse and rapidly growing
Indian portfolio will also be a continuous area of focus.
C. Overall Impact & Success in India:
Advent International has emerged as one of the most impactful and respected
private equity firms in India. By strategically deploying significant capital
and actively partnering with management teams to drive transformational growth,
it has played a pivotal role in scaling numerous Indian enterprises across
critical sectors. Advent's commitment to building strong, sustainable
businesses, combined with its consistent ability to generate attractive
returns, firmly establishes its position as a leading and transformative force
in India's ongoing economic development.
Reflection
Advent International's journey in India is a compelling
illustration of how a globally integrated private equity firm can successfully
navigate and capitalize on the opportunities within a dynamic emerging market.
Their foundational decision to invest in India starting in 2007 and establish a
physical office in 2009 demonstrated early conviction in the country's
long-term growth trajectory. What truly sets Advent apart is its blend of
global scale with granular, local market understanding and its hands-on, operational
approach. As Shweta Jalan stated, their ability to "advise on local
market opportunities based on deep and extensive knowledge" is paramount.
The firm's focus on "investing in growth at scale"
is evident in its willingness to engage in diverse deal types, from backing
founders in high-growth companies to executing complex public-to-private
transactions and carve-outs. This flexibility, coupled with its deep sub-sector
expertise, allows Advent to uncover opportunities that might be missed by less
specialized investors. Their significant investments in critical sectors like
financial services (e.g., YES Bank, Svatantra Microfin) and healthcare reflect
a strategic alignment with India's fundamental economic and social needs.
The core of Advent's value creation lies in its robust
operational capabilities. The presence of a dedicated Portfolio Support Group
and a vast network of Operating Partners means that their engagement goes far
beyond capital injection. They actively collaborate with management teams,
instituting processes, driving strategic improvements, and focusing on areas
like digital transformation and talent acquisition. This rigorous, hands-on
approach ensures that portfolio companies are not just financially bolstered
but are fundamentally transformed into stronger, more sustainable entities. The
successful multi-tranche exit from Crompton Greaves Consumer Electricals,
generating substantial value, is a testament to this effective operational
involvement.
Furthermore, Advent's commitment to responsible investment,
as highlighted by their focus on social impact through investments like
Svatantra Microfin, showcases a holistic view of value creation that extends
beyond just financial returns. Their current fundraising for a new flagship
fund, with an increased focus on Asia-Pacific, signals continued confidence and
aggressive deployment plans for India. Advent International's consistent
performance and strategic depth solidify its position as a key architect in
shaping India's corporate landscape and its journey towards sustained economic
prosperity.
References:
- Advent
International Official Website. (Accessed June 7, 2025). Global
Reach (India), Partnership Approach, Sectors, Investments, Investment
Programs, About Us.
- Advent
International News Release. (2024, March 4). Advent
International and Multiples to invest $230M in Ananya Birla's Svatantra
Microfin, which marks the largest private equity investment in India in
the sector.
- Times
of India. (2021, June 9). Advent International exits Crompton;
sells entire 5.36 pc stake for Rs 1348 cr.
- TaxGuru.
(Undated). Advent of foreign investments in India and its development.
- Goldman
Sachs. (Undated transcript). Exchanges at Goldman Sachs:
Great Investors Investing with Advent International's Tricia Glynn.
- Private
Equity International. (2025, February 27). Advent eyes $26bn for
latest flagship fund.
- AZB
& Partners. (Undated). Advent International, the lead
investor, in the proposed investment of US$ 230 million in Ananya
Birla's Svatantra Microfin.
- Advent
International News. (2024, May 24). Advent helps EBANX and YES BANK
forge a powerful alliance to amplify cross-border commerce in India.
- Advent
International. (Accessed June 7, 2025). Our Team (Mumbai team
details).
- Advent
International. (Accessed June 7, 2025). Advent at Work.
- Advent
International. (Accessed June 7, 2025). Xiaoni Shi - Advent
International (quotes).
- Advent
International. (Accessed June 7, 2025). David Mussafer - Advent
International (quotes).
Comments
Post a Comment