TPG Growth circles VLCC as Carlyle looks to sell minority stake in wellness company
Carlyle is in formal discussions with TPG Growth to sell at least 25-30% stake in VLCC Healthcare Ltd, within a year of acquiring the wellness, beauty products and services company, said people aware of the matter.
VLCC’s nearly 78% surge in valuation in just 12 months is the key trigger for Carlyle to take some money off the table, the people said.
Last January, Carlyle paid Rs 2,700 crore to buy a controlling 66% stake in the three-decade-old homegrown brand that gave the buyout fund an entry into a rapidly growing market for wellness products but one that is facing disruption from younger, nimbler, direct-to-consumer (D2C) brands.
Founders of VLCC – Vandana and husband Mukesh Luthra who owned 95% of the company prior to the Carlyle deal – retained a 30% stake with the management team holding 4%.
From about Rs 4,000 crore in 2023, VLCC is now valued at Rs 7,000-Rs 7,200 crore, said the people cited above.
They added that TPG Growth is expected to put a firm offer in the next few days even as Carlyle has also tapped Gulf-based sovereign wealth funds--Abu Dhabi Investment Authority (ADIA) and Saudi Public Investment Fund (PIF) – among others as part of its ongoing fundraising initiative.
These sovereign funds have been given the option of co-investing in VLCC as well as becoming new limited partners of sponsors of a new Carlyle Asia fund that is being raised.
Canadian pension fund like Ontario Teachers’ Pension Plan (OTPP), British investment firm Permira, and Warburg Pincus, backers of Good Glamm Group,
