BENGALURU | HONG KONG: A consortium led by private-equity firm KKR and investment firm TIGA Investments will buy office space provider The Executive Centre (TEC), the companies said in a statement on Tuesday.
"As part of the transaction, funds advised by HPEF Capital Partners and CVC Capital Partners will exit their investments in the company (TEC). Members of TEC's management team will continue to own shares in the company," they added.
Financial details of the transaction were not disclosed.
TEC's founder and chief executive Paul Salnikow said on Tuesday the company's business grew seven-fold during HPEF and CVC's time as investors.
CVC declined to comment on the transaction. HPEF did not immediately respond to a request for comment.
Founded in 1994, TEC provides premium flexible office space across over 150 centres in 32 cities and 14 markets, including Australia, Greater China, India, Japan, Southeast Asia, Sri Lanka, South Korea and the Middle East, with an annual turnover in excess of $237 million, the statement said.
HPEF owned 70% of the company while CVC owned 20%. TEC's management had the remaining shares.
The two private equity firms paused a sale process of their shares in TEC in 2019 over fears its Hong Kong exposure could weigh on its valuation because of violent protests then taking place there.
Hong Kong accounted for about 30% of its earnings before interest, tax, depreciation and amortisation (EBITDA), Reuters has reported.
TEC's Salnikow said in April its EBITDA grew to $46.1 million in 2019 from $32.3 million in 2016, with revenue surging from $140.74 million to $235.75 million in the same period.