Key Takeaways
- CVC Capital Partners acquired Partners Group for $465.0M.
- Sector: Financial Services & Fintech.
- Geography: India.
Analysis
Global private equity firm Partners Group has completed its exit from Indian housing finance provider Aavas Financiers, selling its remaining stake to CVC Capital Partners. The transaction closes a highly profitable investment cycle for Partners Group and highlights continued investor interest in India's financial services sector.
Partners Group initially invested in Aavas in 2016, aiming to build India's first housing finance company backed by private equity. Aavas went public in 2018 through listings on both the Bombay Stock Exchange and the National Stock Exchange of India. Since then, Partners Group gradually reduced its holding until this final sale to CVC Capital.
Under its ownership, Partners Group implemented significant changes at Aavas, including digital transformation, product diversification, faster branch expansion, and leadership development. These initiatives helped the company navigate several economic shocks, including India’s demonetization, a national liquidity crisis, and the global COVID-19 pandemic.
Between fiscal year 2016 and 2025, Aavas grew its assets under management more than 12 times to over INR 204 billion (approx. USD 2.4 billion), and net income increased nearly 18 times to INR 5.7 billion (approx. USD 67 million). The company’s loan quality also improved significantly.
"This exit represents a textbook example of transformational value creation in Indian financial services," said Sandeep Tandon, Chairperson of Aavas. "Partners Group’s support helped us become a leader in affordable housing finance despite challenging market conditions."
Aavas provides mortgage loans primarily to underserved and self-employed customers in India’s smaller towns and cities. The average loan size is around USD 11,000, with the company operating 397 branches across 14 Indian states and territories.
“We thank Partners Group for their backing,” said Sachinder Bhinder, CEO of Aavas. “We’re now in a strong position to expand our services in the affordable housing and small business lending markets.”
Manas Tandon, Partner at Partners Group, added: “We’re proud to have helped build a resilient institution that is making a real difference for customers aiming to own homes and grow businesses.”
This marks Partners Group’s second major exit in India within the past year, following the IPO of Vishal Mega Mart. The firm has invested over USD 2.3 billion in India and manages USD 78 billion in private equity globally.
CVC Capital Expands in Indian Market
CVC Capital Partners acquired a 26.47% stake in Aavas Financiers for approximately INR 3,400 crore (USD 465 million). The firm also launched a public offer to acquire up to an additional 26% stake, which could give it majority control of Aavas.
This move is part of CVC’s broader strategy to increase exposure to emerging market financial services. Aavas, with its strong track record and extensive network, presents a compelling opportunity in India’s rapidly growing mortgage market.
The deal between Partners Group and CVC Capital underlines global investor confidence in India's housing finance sector. It also showcases how private equity can drive growth and operational improvement in emerging markets. With new backing from CVC, Aavas is set to continue its mission of improving homeownership access for millions across India.