KKR, TIGA buys out PE investors of The Executive Centre

KKR and TIGA Investments are leading a consortium to buy out existing private equity investors HPEF Capital Partners (former HSBC Private Equity) and CVC Capital Partners from The Executive Centre (“TEC”), a flexible office space solutions provider with properties across Asia and the Middle East. TEC halted its sale two years ago amidst unrest in Hong Kong, according to Mingtiandi which reported that the transaction size in the order of $750 million in September 2019.

https://www.mingtiandi.com/real-estate/flexible-office/the-executive-centre-calls-off-750m-sale/

Founded in 1994, TEC has expanded rapidly across Asia Pacific to serve more than 32,000 members across over 150 centres in 32 cities and 14 markets, including Greater China, Japan, South Korea, Southeast Asia, Australia, India, Sri Lanka, and the Middle East, with an annual turnover in excess of US$237 million. TEC offers enterprise solutions, premium private offices, coworking and virtual spaces, equipped with meeting & event facilities, and a broad range of full IT support and corporate concierge services.

HSBC Private Equity (HPEF) invested in TEC in 2009, and was joined by CVC in 2014. Members of TEC’s management team will continue to own shares in the Company.

In a statement, Paul Salnikow, founder and CEO of The Executive Centre thanked his outgoing investors for helping to increase the size of the business sevenfold during their investment tenure.

SJ Lim, a Managing Director at KKR, stated, “As we look ahead to the market’s evolving needs, flexibility will be key in companies’ future workplace strategies.”

G. Raymond Zage III, Founder of TIGA added: “As the future of work increasingly shifts towards a hybrid model, we look forward to partnering with Paul and his team and helping to elevate the company to its next phase of growth for the benefit of businesses, tenants and landlords across the region.”