CVC Capital Partners has agreed to buy a majority stake in The Executive Centre from Headland, which will retain a minority ownership in the firm. No financial terms were disclosed for the transaction that is expected to close at the end of May. PwC, Bain & Co., Freshfields Bruckhaus Deringer and Clifford Chance advised CVC while Allen & Gledhill advised Headland. HSBC and Babson Capital are providing the debt financing for the deal. The Executive Centre is an Asia-based serviced office provider.
CVC Capital Partners (“CVC”) and Headland Capital Partners Limited (“Headland”) announced today that funds advised by CVC, in partnership with the management team, have agreed to acquire a majority stake in The Executive Centre Limited (“The Executive Centre”) from funds advised by Headland. Funds advised by Headland will retain a minority ownership in the business.
The Executive Centre, founded in 1994 by current Chairman and CEO Paul Salnikow, is Asia’s leading premium serviced office provider, with 61 centres across 20 major cities in 10 countries across the region, generating over $100m of revenues.
Headquartered in Hong Kong, the business operates serviced offices in key Asian countries, including China, Hong Kong, Japan, India, Korea, Indonesia, Singapore and Australia. The Executive Centre provides high quality serviced offices, virtual offices, meeting facilities, video conferencing and a broad range of business concierge services for a large number of premium multi-national and local clients.
The Executive Centre has demonstrated a consistent track record of high growth over its 20 year history, through a combination of organic growth and selective roll-out of new centres in locations across Asia.
Paul Salnikow, Chairman and CEO of The Executive Centre said: “We are delighted to have CVC as our new partner as we enter the next phase of our company’s growth. There is huge opportunity for The Executive Centre to continue our expansion in the premium serviced office market in Asia and we very much welcome the support and resources which CVC will bring. We are very grateful to Headland for their support over the past four and a half years.”
In a joint statement, Roy Kuan, Managing Partner of CVC and James Redmayne, head of the Pan Asia team at CVC said: “We are very excited to have the opportunity to invest in The Executive Centre alongside management. Paul Salnikow and his team have built a first-class business, which provides the highest quality offering in a structurally growing market. We look forward to working with them and using CVC’s capabilities across Asia and beyond, to help take The Executive Centre to the next stage of its development.”
Paul Kang, Senior Partner of Headland said “Since our investment in The Executive Centre, the business has thrived under the guidance of Paul Salnikow and his team, with the network of centres more than doubling. We look forward to continuing our relationship with the company in the future through our re-investment stake.”
CVC was advised by PwC, Bain & Co., Freshfields Bruckhaus Deringer and Clifford Chance. Management was advised by Norton Rose Fulbright. Headland was advised by Allen & Gledhill. Fully committed debt financing is being provided by HSBC and Babson Capital.
Completion of the transaction is expected to take place at the end of May 2014.
The Executive Centre
The Executive Centre is Asia’s leading premium serviced office provider with 61 offices in 20 cities. Founded in 1994, it operates in Hong Kong, Beijing, Chengdu, Guangzhou, Shanghai, Shenzhen, Tianjin, Macau, Taipei, Bangalore, Chennai, Gurgaon, Mumbai, Singapore, Jakarta, Tokyo, Seoul, Brisbane, Perth and Sydney. The Executive Centre provides serviced offices, virtual office representation services, meeting and conference facilities, and business concierge services to multinational corporations, small and medium enterprises, and start-ups locally, regionally and internationally. For further information, please visit www.executivecentre.com.
CVC Capital Partners
CVC is one of the world’s leading private equity and investment advisory firms. Founded in 1981, CVC today has a network of 21 offices and 280 employees throughout Europe, Asia and the US.
Currently, CVC manages funds on behalf of over 300 investors from North America, Europe, Asia and the Middle East, who entrust their capital to CVC for periods of 10 years or more. To date, CVC has secured commitments of over US$60 billion in funds from a diverse and loyal investor base, completing over 300 investments in a wide range of industries and countries across the globe, with an aggregate transaction value of over US$150 billion. For further information, please visit www.cvc.com.
Headland Capital Partners Limited
Headland’s team began advising Asian private equity funds in 1989 and operated its business as HSBC Private Equity (Asia) Limited (HPEA) until 2010. Headland is among the largest and longest established private equity firms within Asia, having advised nine Asian regional private equity and venture capital funds during its history.
Headland’s team has advised both private equity and venture funds with aggregate committed capital of approximately US$3.4 billion. The funds advised by Headland have made investments in more than 140 companies, primarily in Greater China, South Korea, Southeast Asia and India. Headland currently has active capital of approximately US$2.4 billion. For further information, please visit www.headlandcp.com.