Bloomberg News

Apax Said in Talks to Sell Travelex to Abu Dhabi Investor Group

May 22, 2014

Currency Banknotes Sit in a Cash Register at a Travelex St

Mixed denomination currency banknotes, including euros, bottom right, and sterling, left, are seen in a cash register at a Travelex store in London. Travelex said in March it was considering an initial public offering. Photographer: Simon Dawson/Bloomberg

Apax Partners LLP is in talks to sell a majority stake in Travelex Holdings Ltd. to an Abu Dhabi-based group of investors for about 500 million pounds ($843 million), said two people with knowledge of the matter.

Bavaguthu Raghuram Shetty, an Indian-born entrepreneur, Centurion Investment and Infinite Investment LLC, two firms owned by Abu Dhabi’s bin Butti family, are in talks to buy a controlling stake in the chain of currency-exchange centers, said the people, who asked not to be identified because they weren’t authorized to speak publicly. A deal may be announced as soon as this week, the people said.

Apax had been poised to take Travelex public in an initial public offering. The London-based private-equity firm bought a majority stake in Travelex in 2005 in a deal that valued the company at about 1.1 billion pounds. Travelex, led by Chief Executive Officer Peter Jackson, sold assets including a card-program management unit to MasterCard Inc. (MA:US) in 2011 and a business-payments unit to Western Union Co. (WU:US) to focus on its consumer business.

Private-equity firms typically pool money from pension plans and endowments with a mandate to buy companies within five to six years, then sell them and return the money and a profit after 10 years. The firms usually charge a management fee of as much as 2 percent and keep 20 percent of the profits from investments.

Officials at Apax declined to comment. Representatives of Travelex and Centurion didn’t immediately respond to requests for comment.

To contact the reporters on this story: Stefania Bianchi in Dubai at; Ruth David in London at; Kiel Porter in London at

To contact the editors responsible for this story: Edward Evans at Jon Menon

The Good Business Issue

Companies Mentioned

  • MA
    (MasterCard Inc)
    • $87.77 USD
    • 0.14
    • 0.16%
  • WU
    (Western Union Co/The)
    • $18.07 USD
    • -0.05
    • -0.28%
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