- The Executive Center, KKR and TIGA Investments have announced the signing of definitive agreements under which a consortium led by KKR and TIGA Investments will acquire TEC.
- The investment will strengthen TEC’s position as a leading provider of premium flexible workspaces in the fast growing economies of Asia Pacific and the Middle East.
- Under the new agreement, funds advised by HPEF Capital Partners and CVC Capital Partners will abandon their investments in The Executive Center.
HONG KONG & SINGAPORE – June 1, 2021 – The Executive Center (“TEC” or the “Company”), KKR and TIGA Investments today announced the signing of definitive agreements under which a consortium led by KKR and TIGA Investments will acquire TEC.
The Executive Center is the leading provider of premium flexible office solutions in markets such as Greater China, North Asia, South East Asia, Australia, India, Sri Lanka and the Middle East. The company has grown rapidly across Asia-Pacific since its inception in 1994, fueled by the continued demand for premium workspaces in prime central locations from its client base in large multinationals. It now serves more than 32,000 members in more than 150 centers 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 higher than that of the United States. $ 237 million. The Executive Center’s offerings include high-quality business solutions, high-end private offices, coworking and virtual spaces, each equipped with meeting and event rooms, as well as a wide range of services full IT support and corporate concierge.
As part of the transaction, the funds advised by HPEF Capital Partners and CVC Capital Partners will exit their investments in the Company. Members of TEC’s management team will continue to own shares of the Company.
Paul Salnikow, Founder and CEO of The Executive Center said: “We are delighted to welcome KKR and TIGA Investments to The Executive Center as new investors. This is a powerful partnership, well suited to drive TEC’s continued performance and growth. I also thank HPEF Capital Partners and CVC Capital Partners for their investment mandate, during which we increased the size of the company by seven.
SJ Lim, Managing Director of KKR, added: “As we anticipate changing market needs, flexibility will be key to future business strategies in the workplace. We believe The Executive Center is well positioned to seize new growth opportunities and build on its long-standing leadership position in the premium workspace segment in Asia. KKR is delighted to support The Executive Center, Paul and his team during this exciting time for the market. ”
“We are delighted to invest in the growth of The Executive Center alongside KKR,” said G. Raymond Zage III, Founder of TIGA. “As the future of work moves more and more towards a hybrid model, we look forward to working with Paul and his team and helping to elevate the company into its next phase of growth for the benefit of businesses,” tenants and landlords across the region. ”
KKR makes its investment through its investment funds. Additional details of the transaction were not disclosed.
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About the Executive Center
The Executive Center (TEC) was founded by Paul Salnikow in 1994 in Hong Kong and today serves over 32,000 members per day in over 150 centers in 32 cities and 14 markets. TEC is Asia’s third largest flexible office space with annual revenue of over US $ 237 million.
The Executive Center is for ambitious professionals and industry leaders looking for more than just office space – they are looking for a place to thrive for their organization. TEC has cultivated an environment designed for success with a global network spanning Greater China, Southeast Asia, North Asia, India, Sri Lanka, the Middle East and Australia, with aim to go further and grow faster. Each executive center offers a prestigious address with an advanced infrastructure to anticipate, meet and exceed the needs of its members. By supporting members through every step and achievement, The Executive Center enables ambitious professionals and organizations to succeed.
Privately owned and based in Hong Kong, TEC provides first-class private and shared workspaces, corporate concierge services, and meeting and conference facilities to meet the needs of any business.
KKR is a leading global investment firm providing alternative asset management, capital markets and insurance solutions. KKR aims to generate attractive returns on investment by following a patient and disciplined approach to investing, employing world-class people and supporting the growth of its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer pension, life and reinsurance products under the leadership of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For more information about KKR & Co. Inc. (NYSE: KKR), please visit the KKR website at www.kkr.com and on Twitter @KKR_Co.
About TIGA Investments
TIGA Investments (TIGA) is a Singapore-based company focused on making long-term investments in differentiated businesses with strong management teams. TIGA brings its deep global relationships, broad industry expertise and agility in decision making to help companies reach their maximum potential. TIGA is also the sponsor of TIGA Acquisition Corp, a special purpose acquisition company listed on the NYSE. TIGA is led by G. Raymond Zage, III and Ashish Gupta, who have over 46 years of investment experience.
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