Private investment firm Bain Capital has signed a definitive agreement to acquire 90% of Indian non-bank financial institutions Adani Capital and Adani Housing.

According to Bain Capital, the deal will buy out 100% of the Adani family’s private investments in the company.

Adani Capital managing director and CEO Gaurav Gupta will fully roll his stake in the company and continue to serve in the same position.

Gupta said: “Our aim has always been to support micro-entrepreneurs and first-time homeowners in Bharat and to be the most economical and convenient lender to our customers by leveraging technology.

“The team and I are very pleased to welcome a partner like Bain Capital who shares our vision of making affordable finance available to our customer segment with a strong focus on customer literacy and education. With Bain Capital committing INR 1,000 Cr of capital in the Company, we are now equipped to grow 4x from here.”

In line with the acquisition, Bain Capital has committed $120m in primary capital to facilitate the company’s ongoing growth.

Besides, the private investment firm will immediately make a liquidity line of $50m available to the company in the form of non-convertible debentures.

The transaction will position the non-bank financial institution as a standalone company to bolster expanded lending to underserved micro, small and medium enterprises (MSME), agriculture, and affordable housing segments.

Bain Capital partner Rishi Mandawat said: “We see compelling opportunities to partner with Gaurav and team to support and facilitate Adani Capital’s next phase of growth by providing access to significant capital, strategic and operating resources, and deep experience partnering with financial services businesses in India and across the globe.”

Founded in 2017, Adani Capital has built an asset under management of about $500m and a network spanning over 170 branches across eight states.

Subject to necessary regulatory and market approvals, the transaction is anticipated to be complete in Q4 2023.