RHCP SUCCESSFULLY EXITS ITS INVESTMENT IN ADITYA BIRLA MINACS
Sells its stake in India and repatriates profits and capital back to Limited Partners.
TORONTO, September 27, 2011 – ReichmannHauer Capital Partners (“RHCP”) announced today that it has sold its stake in Aditya Birla Minacs (ABM), a leading global business process outsourcing (BPO) company with over 15,000 employees across more than 25 locations. RHCP led and guided the acquisition of Minacs a TSX listed company in 2006 and subsequently invested in TransWorks Information Services Limited an India based BPO company that merged with Minacs to create ABM. The exit achieved through a private transaction was consummated earlier this month and the invested capital and profits successfully repatriated back from India and distributed to the Limited Partners.
“This exit has demonstrated RHCP’s ability to safely and successfully deploy capital in emerging markets, drive value creation across geographies and effectively navigate the complexities of regulatory issues in repatriating the returns on such investments,” said Philip Reichmann Co-Founding Partner of RHCP.
Mr. Prashant Pathak, Managing Partner of RHCP, added, “It has been a good outcome for the fund overall and in light of the investment circumstances. ABM was a distinctive and complex cross-border transaction that RHCP created in a proprietary manner. The substantial part of the gains secured after the transaction were lost due to the strong headwinds from the Great Recession and the severe impact it had on ABM’s significant customers in the US financial services and automotive sectors, amidst these obstacles the sincere and diligent efforts of the management team and the Board enabled a successful turnaround of the Company to deliver a profitable exit for our Limited Partners.”
With this exit the DPI (Distributions to Paid in Capital) of funds managed by RHCP is 1.03 versus upper quartile performance of 0.12 and 0.25 for funds of 2007 and 2006 vintage respectively. The TVPI (Total-Value to Paid in Capital) of the fund stood at 1.72 versus upper quartile performance of 1.26 and 1.27 for funds of 2007 and 2006 vintage respectively. The benchmarks for alternative investment and private equity performance referred above are from Cambridge Associates US Private Equity Index as of March 2011. On going substantial investments of RHCP include its stakes in Allan Candy Company Limited and IG Realty Investments Inc.
RHCP is a private investment firm of active investors and business builders. Its principal orientation is to be highly active yet patient owners, driving lasting strategic and operational improvements and strong financial returns.
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September 2011 | more news