Project 4

1. The Carlyle Group, a global investment group, stated in March 2019 that it had
purchased a 9% stake in SBI Life Insurance Company Ltd., a private life
insurance company in India. SBI Life is the State Bank of India's life insurance
arm. CA Emerald Investments, an affiliated business of Carlyle Asia Partners V,
Carlyle's flagship US$6.55 billion funds focusing on buyout and strategic
investments across a range of sectors in the Asia Pacific, provided Carlyle's
equity for this investment.

BNP Paribas Cardiff and CA Emerald Investments now own 12.8 percent and
9.0 percent of the company, respectively, while SBI maintains the biggest
stakeholder with a 62.1 percent holding. As of December 31, 2018, Carlyle had
invested more than US$4 billion in more than 15 private equity investments in
the Asia Pacific financial services industry, bringing its total investment in the
region to more than US$20 billion. PNB Housing Finance Limited and SBI Card
are two of Carlyle's latest financial sector ventures in India. In 2021, Carlyle
Group sold their 1.9 percent stake in SBI Life Insurance Company through
open market transactions, exiting the company. The deal was for a total of Rs.
2,147 crores. A number of mutual funds have also bought the stock, including
Kotak Mahindra Mutual Fund, Pioneer Investment Fund, Nippon Indian
Mutual Fund, Franklin Templeton Mutual Fund, SBI Mutual Fund, and ICICI
Prudential Mutual Fund.

According to a term sheet, the price range for the share sale is Rs 1,130 to Rs
1,136.85. The BSE closing price of SBI Life is at the top of the range. Carlyle
sold a 3% investment in the company in November 2019 for Rs 938 a share,
raising Rs 2,814 crore. Then, in May of 2021, Carlyle raised Rs 4,061 crore by
selling a 4.2 percent stake in SBI Life for Rs 960 per share. With total returns
crossing 4,300 crores, we can confidently say that this investment had a pretty
positive return.

2. In 2017, SBI Life was one of a number of insurance businesses that went
public. Its initial public offering was 3.7 times oversubscribed because of
substantial institutional investor participation, despite poor demand from
retail and high-networth people. Carlyle Group, a private equity group, had
purchased a 9% interest in SBI Life Insurance Ltd for Rs 4,635 crore ($652
million), its largest-ever investment in India.

BNP Paribas Cardiff SA said in a stock-exchange filing on Friday that Carlyle

had purchased a stake in the Indian insurer. The French bank's insurance
subsidiary sold a total of 9.23 percent of SBI Life, lowering its share to 12.77
percent. State Bank of India and BNP Paribas owned 84.1 percent of the
insurer prior to the transaction. The insurance company is 62.1 percent owned
by India's largest lender. Carlyle bought 90 million shares of SBI Life at Rs 515
each, according to stock exchange data. On the BSE, SBI's shares rose 5.5
percent, valuing the business at Rs 61,225 crore.

However, this is lower than the initial valuation of Rs 70,800 crore at which it
began trading. In India, Carlyle is currently invested in nearly 20 companies,
according to VCCEdge. In rupee terms, Carlyle's stake in SBI Life is the largest,
though it matches another bet in dollar terms. In 2007, Carlyle paid Rs 2,650
crore ($650 million) for a 5.2 percent share in Housing Development Finance
Corp, India's largest mortgage lender. Carlyle Group exited SBI Life Insurance
Company through open market transactions, selling its 1.9 percent stake in
the company. The deal was for a total of Rs. 2,147 crores. Carlyle Group sold
the shares of SBI Life at a value of Rs. 1130 per share. If we find out the
equivalency between the shares sold and the shares purchased, these are the
figures we arrive at.

Total stake purchased = 9% Total Value for the stake purchased = 4635 crores.

Stake sold off = 1.9%

Equivalent (1.9% stake would have been valued at this price at the time of
purchase) = 978.5 crores.

The total value of stake sold = 2147 crores.

Holding Period for the investment = 2.5 years

As per the CAGR calculator, the rate of return was found to be 31.8% CAGR.

These figures are just for the last 1.9% stake. However, if we look at the whole
investment, these are the figures.

Total stake purchased = 9%

 Total Value for the stake purchased = 4635 crores.
Stake sold off = 9% The total value of stake sold = 9022 crores.
Holding Period for the investment = 2.5 years
As per the CAGR calculator, the rate of return was found to be 26.88% CAGR.

3. No, Carlyle Group doesn’t hold shares for SBI Life anymore. Carlyle purchased
a 9% stake in SBI Life from BNP Paribas in 2019 for around Rs 4,635 crores. In
November 2019, Carlyle sold a 3% investment in the company for Rs 938 per
share, raising Rs 2,814 crore. Then, in May of 2021, Carlyle raised Rs 4,061
crore by selling a 4.2 percent stake in SBI Life for Rs 960 per share. The final
offloading of the shares by Carlyle Group for the remaining 1.9% stake was
done in August 2021. The remaining stakes were sold off at Rs. 1130 apiece.
The promoter, State Bank of India (SBI), currently owns 55.5 percent of SBI
Life, while BNP Paribas Cardiff has 0.2 percent.