Hillhouse buys minority stake in Carlyle-backed Quest Global at $4.5b valuation

Mumbai: Singapore-based Hillhouse Investment has acquired a minority stake in Carlyle-backed engineering services provider Quest Global. The companies did not disclose the size of the stake and deal value, in a joint statement issued Monday.

Singapore-headquartered Quest Global operates more than 93 delivery centres globally and has more than 21,000 employees.

ET was the first to report on 10 February that Hillhouse is close to purchasing a 5% stake in Quest Global at a $4.5 billion valuation. It had outbid Temasek which was also competing for the same deal, the report cited people familiar with the matter as saying.

The investment, part of Quest Global's pre-IPO fundraise, would comprise a mix of primary capital infusion and secondary share sales by angel investors and high-net-worth individuals (HNIs), ET reported at the time. ET also reported last December that Hillhouse had entered the race to buy a minority stake in Quest Global.

US private equity firm Carlyle holds a 24% stake in Quest Global, while co-founder and CEO Ajit Prabhu owns 42%. Other shareholders include ChrysCapital, True North, Onyx, Ocorian Singapore, JTC Trust and Sanaka Growth, along with angel investors and HNIs.

Founded in 1997 by former GE engineers Ajit Prabhu and Aravind Melligeri, Quest Global serves global clients such as Pratt & Whitney, Rolls-Royce, BMW, Airbus, and General Electric. "This investment by Hillhouse is a significant step in our journey to be the most trusted partner for the world's hardest engineering problems," said Ajit Prabhu.

Quest Global is also considering a reverse flip, which would involve shifting its parent entity's domicile from Singapore to India. This will be done through a merger with its Indian arm. The move is aimed at enabling a listing on the Indian bourses. Upon completion, the company's global headquarters will move to Bengaluru.

Hillhouse, founded in 2005 with seed capital from the Yale University endowment, currently operates in more than 18 countries including India. "We believe Quest Global is well positioned to benefit from increasing global demand for advanced engineering and technology-led transformation," said Sean Carney, partner and co-head of global buyout at Hillhouse.