Microfinance Private Equity

Rabo Private Equity to invest in Future Groups Cash and Carry

Rabo Equity Advisors, the Rabo Bank’s offshore private equity fund, is likely to sign a deal next week to buy nearly 20% stake in Rural Fairprice Wholesale, Future Group’s cash-and-carry entity for rural retailing and sourcing business, a person close to the deal said.

ET had reported about the possibility of such a deal in its edition on July 16. The PE fund is buying the stake held by Aadhaar Retail, the Future Group’s front-end entity for rural retailing, in Rural Fairprice. Rajesh Srivastava, CMD of Rabo Equity Advisors, said: “We will announce our plans at the appropriate time.” Future Group CEO Kishore Biyani and A Mahendran, FMCG director of Godrej Group, who holds a 4% stake in Aadhaar Retail, declined to comment on the deal.

Future Group owns 60% stake in Aadhaar Retail and the Godrej group holds a 36% stake. Local laws allow 100% foreign direct investment in the wholesale cash-and-carry business and 51% FDI in single-brand retail ventures.

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