Carlyle and Quest Global Enter into a Strategic Partnership

Rhea-AI Summary

Carlyle (NASDAQ: CG) and Quest Global have reached a definitive partnership agreement, with Carlyle acquiring a significant minority stake in the company. The equity for the transaction will come from Carlyle Asia Partners. The current investors Bain Capital and Advent International will exit, and Quest Global will repurchase its company shares. Ajit Prabhu, Chairman and CEO of Quest Global, will acquire an additional stake in the company. The partnership demonstrates Quest Global's commitment to its long-term success, and Carlyle's belief in its potential for growth and success in the ER&D space.

Positive

• Carlyle's extensive experience in investing in the technology and business services sector bodes well for Quest Global's future growth and success.
• The partnership approach taken for this transaction demonstrates Quest Global's commitment to the long-term success of its business strategy and its employees.
• The acquisition of a significant minority stake by Carlyle indicates a strong belief in Quest Global's potential for growth and success in the ER&D space.

Negative

• None.

WINDSOR, Conn., Aug. 8, 2023 /PRNewswire/ -- Global investment firm Carlyle (NASDAQ: CG) and Quest Global, one of the world's leading engineering services firms, today announced they have reached a definitive partnership agreement whereby Carlyle will be acquiring a significant minority stake in the company. Equity for this transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners.

As part of this transaction, current investors Bain Capital and Advent International will exit; Quest Global will repurchase its company shares; and Ajit Prabhu, Chairman and CEO of Quest Global, will acquire an additional stake in the company. The partnership approach taken for this transaction demonstrates Quest Global's commitment to the long-term success of its business strategy and its employees.

Established over 25 years ago and headquartered in Singapore, Quest Global is a leading global player in engineering, research and development ("ER&D") services for the design, product development and operations of complex engineering systems. It currently has a multi-disciplinary team of over 17,500 engineers, across 67 delivery centers and offices, in 17 countries globally, that is dedicated to helping solve its clients' engineering challenges better and faster.

Amit Jain, Managing Director and Head of Carlyle India Advisors, said, "We have known Ajit for two decades and we believe he has demonstrated visionary leadership over these years. Carlyle was the first early-stage private equity investor in Quest Global and we are proud to partner again. We believe the company's undivided client centricity, drive for engineering excellence, differentiated global delivery model and the entrepreneurial energy of the management team have enabled it to scale successfully across a diverse set of industry verticals. Looking ahead, our view is that Quest Global is well-poised to benefit from the growing focus on product innovation, digital engineering, embedded systems, increased outsourcing and disruptive technology advancements across industries. We look forward to working closely with Quest Global's management team while leveraging Carlyle's deep sector expertise and global network to help the company expand its global leadership in the ER&D space."

"At Quest Global, we believe engineering has the unique opportunity to solve the problems of today that stand in the way of tomorrow – to create a brighter future. It was a great value-added partnership with Carlyle the first time around, and I look forward to working with Carlyle again, to propel us in the journey ahead. Together, I am confident we will deliver on our mutual commitment to provide cutting-edge engineering solutions to our clients around the world, while preserving our entrepreneurial culture," said Ajit Prabhu, Chairman and CEO of Quest Global.  

"We are thankful for the partnership of Bain and Advent for their instrumental role in advancing the company's purpose and growth trajectory. Their strategic insights and unwavering support have been invaluable," added Mr. Prabhu.  

The transaction remains subject to satisfaction of certain conditions precedent to closing, including customary regulatory approvals. 

Barclays, J.P. Morgan, BNP Paribas and Latham & Watkins served as advisors to Quest Global on the transaction; and Deutsche Bank, Clifford Chance, KPMG and Trilegal served as advisors to Carlyle. Barclays, BNP Paribas, Citibank, Deutsche Bank, HSBC, ING, J.P. Morgan, Nomura, Standard Chartered Bank, Allen & Overy and Linklaters helped arrange financing for the transaction.

Carlyle's buyout funds, including Carlyle Asia Partners, have well-established experience investing in the technology and business services sector, and have invested over US$35 billion of equity in over 280 deals globally as of June 30, 2023, with approximately US$5.6 billion of this in Asia.

About Quest Global

Founded in 1997, Quest Global is one of the world's leading engineering research and development (ER&D) services companies. Quest Global believes engineering has the unique opportunity to solve the problems of today that stand in the way of tomorrow. For more than 25 years, the Company has strived to be the most trusted partner for the world's hardest engineering problems. As a global organization headquartered in Singapore, the team at Quest Global live and work in 17 countries, with 67 global delivery centers and offices, driven by 17,500+ extraordinary employees who make the impossible possible every day. Quest Global delivers world-class end-to-end engineering solutions by leveraging deep industry knowledge and digital expertise. By bringing together technologies and industries, alongside the contributions of diverse individuals and their areas of expertise, Quest Global is able to solve problems better, faster. This multi-dimensional approach enables the team to solve the most critical and large-scale challenges across the aerospace & defense, automotive, energy, hi-tech, healthcare & medical devices, rail, and semiconductor industries.

About Carlyle

Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across its business and conducts its operations through three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $385 billion of assets under management as of June 30, 2023, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,200 people in 29 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

Media Contacts

Quest Global
Anubhuti Agarwal
Email: Anubhuti.Agarwal@quest-global.com
Quest Global LinkedIn: https://www.linkedin.com/company/quest-global/mycompany/

Carlyle
Lonna Leong
Email: lonna.leong@carlyle.com

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SOURCE Quest Global

FAQ

What is the partnership agreement between Carlyle and Quest Global?

Carlyle is acquiring a significant minority stake in Quest Global, with the equity for the transaction coming from Carlyle Asia Partners. The current investors Bain Capital and Advent International will exit, and Quest Global will repurchase its company shares. Ajit Prabhu, Chairman and CEO of Quest Global, will acquire an additional stake in the company.

What is the focus of Quest Global's business?

Quest Global is a leading global player in engineering, research and development ('ER&D') services for the design, product development, and operations of complex engineering systems. It has a multi-disciplinary team of over 17,500 engineers across 67 delivery centers and offices in 17 countries globally.

Who are the advisors for the transaction?

Barclays, J.P. Morgan, BNP Paribas, and Latham & Watkins served as advisors to Quest Global on the transaction; and Deutsche Bank, Clifford Chance, KPMG, and Trilegal served as advisors to Carlyle. Additionally, several banks helped arrange financing for the transaction.