New Delhi, April 16 -- KFin Technologies Ltd, which counts private equity firm General Atlantic as its biggest shareholder, said Wednesday it has agreed to acquire Singapore-based Ascent Fund Services Pte. Ltd.

Mumbai-listed KFin, a provider of investor and issuer services to asset managers and Indian companies, will initially pick up a 51% stake in Ascent for $34.7 million and buy the remaining stake over the next five years.

KFin will make a primary capital infusion of $5 million in Ascent and spend $29.7 million for a secondary purchase of shares at an enterprise value of $63 million.

It will buy the residual 49% stake in three equal tranches of 16.33% each after the end of fiscal years 2028, 2029, and 2030, respectively. The transaction is subject to customary regulatory approvals.

KFin is a financial services platform that provides services to the capital markets ecosystem, including asset managers and corporate issuers, across asset classes in India. General Atlantic invested in KFin in late 2018 and currently owns a tad below 33% stake in the company. The PE firm pared its stake during the company's IPO in 2022 and through open market transactions subsequently, including last year and the year before.

Ascent is a global fund administrator that has clients across 18 countries. It serves 260 global alternative asset managers managing 576 funds across asset classes, with $24 billion in assets under administration. Its clients include hedge funds, fund of funds, private equity and venture capital funds, and real estate investment trusts.

The company recorded revenue of $13.32 million, $10.12 million, and $7.42 million in FY24, FY23, and FY22, respectively. For the six-month period of FY25, it posted revenue of $8.50 million.

Founded in 2019, Ascent offering services such as fund setup, fund accounting including NAV calculation, as well as transfer agency services, corporate services, and digital onboarding, among others. It operates through 23 offices across 13 countries, including Singapore, Hong Kong, the UAE, Mauritius, and India.

The Ascent acquisition will help KFintech gain access to the global fund administration market with requisite licences to provide services across multiple international jurisdictions, the Indian company said.

Published by HT Digital Content Services with permission from VC Circle.