Swiss PE firm Partners Group to acquire majority stake in Infinity Fincorp for $230 mn, outbids Advent and Creador | Company Business News

Swiss private equity firm Partners Group is set to acquire a majority stake in shadow lender Infinity Fincorp for ₹1,950 crore ($230 million), the companies said on Thursday.

The transaction includes a primary capital infusion of ₹600 crore ($70 million) and a secondary purchase of shares from existing shareholders, including Indium IV (Mauritius) Holdings, a fund advised by True North. The companies did not disclose the percentage of the stake being acquired.

Partners Group clinched the deal after outbidding rival private equity firms Advent International and Creador, both of which had also shown interest in acquiring a controlling stake in Infinity Fincorp.

The ₹600 crore primary investment will help Infinity expand its branch network, upgrade technology systems, and improve customer onboarding processes.

Infinity Fincorp, headquartered in Mumbai, provides secured loans to micro, small, and medium enterprises (MSMEs), particularly in Tier 2 and Tier 3 cities. The company operates over 120 branches across eight states and manages assets worth over ₹1,200 crore.

This deal marks Partners Group’s first step into India’s MSME lending segment. Infinity Fincorp serves nearly 50,000 clients in sectors including agriculture, manufacturing, and trade, and has a workforce of over 1,500 employees.

The transaction, which is pending approval from the Reserve Bank of India (RBI), will see Partners Group take over from Indium IV as the majority shareholder. Existing investor Jungle Ventures will retain a stake and participate in the new round.

Avendus Capital served as the sole financial advisor to Infinity Fincorp and Indium IV for this transaction.

Infinity’s current leadership team, including its founder and CEO Shrikant Ravalkar, will remain in charge of operations.

Established in 2016 as a subsidiary of National Bulk Handling Corporation and initially funded by Indium IV Holdings (a True North-advised fund), Infinity provides secured business loans to MSMEs in underbanked areas.

It operates in eight states across western and southern India, with a network of 123 branches and 1,507 employees. The states of Andhra Pradesh, Telangana, and Tamil Nadu account for 75% of its total assets under management (AUM).

Infinity primarily extends loans secured by residential or commercial property, targeting small businesses such as traders, retail shops, dairy outlets, kirana stores, and medical or provision stores.

Earlier this year, the company raised $40 million in an extended Series A round led by Beams Fintech Fund, with participation from existing investors True North LLP, Jungle Ventures, and Archerman Capital. In January, it had already secured $35 million from Jungle Ventures, Archerman Capital, and Magnifico.

Partners Group, which manages $152 billion in global assets, has previously invested in several Indian companies, including HR software provider Darwinbox, logistics startup Ecom Express, and retail chain Vishal Mega Mart.

In April, the firm exited its investment in Ecom Express by selling its stake to Delhivery in a cash deal worth ₹1,407 crore, alongside co-investors Warburg Pincus and British International Investment. Beyond these, the group has also invested in CSS Corp, an IT services provider, and Aavas Financiers, a housing finance company.