Singapore-based investment firm Hillhouse has acquired a minority stake in engineering services company Quest Global at a $4.5 billion valuation, outbidding sovereign wealth fund Temasek in a competitive pre-IPO fundraising round.

Hillhouse Secures Minority Stake in Quest Global

Singapore-headquartered investment firm Hillhouse has successfully acquired a minority stake in Quest Global, a leading independent engineering services company, in a transaction valued at approximately $4.5 billion. The deal marks a significant step in Quest Global's pre-IPO fundraising efforts and represents a strategic vote of confidence in the company's growth trajectory. According to sources familiar with the matter, Hillhouse secured the investment by moving more aggressively and progressing faster in negotiations compared to its main competitor, Singapore's sovereign wealth fund Temasek, which was also vying for a similar stake in the company.

Deal Structure and Investment Details

The transaction between Hillhouse and Quest Global comprises a combination of primary capital infusion and secondary share purchases from existing shareholders. The primary component involves fresh capital flowing directly into Quest Global to support its strategic initiatives, while the secondary aspect involves Hillhouse acquiring shares from select existing investors, including angel investors and high-net-worth individuals who have backed the company since its founding. This dual-structure approach reflects a common practice in pre-IPO rounds where new investors contribute capital while also enabling early stakeholders to partially exit their positions. The exact size of Hillhouse's stake and the total deal value were not disclosed by the companies, though multiple sources indicate the firm is acquiring approximately five percent of Quest Global's equity.

This statement from Ajit Prabhu, co-founder and chief executive officer of Quest Global, underscores the company's confidence in the partnership and its commitment to expanding its engineering capabilities across key markets globally.

The investment reinforces the strength of our differentiated value proposition, financial and operating discipline, and long-term growth strategy. We look forward to partnering with Hillhouse as we further invest in advanced engineering capabilities that will help our clients solve the problems of today that stand in the way of tomorrow.

Quest Global's Market Position and Growth Trajectory

Founded in 1997 by former General Electric engineers Ajit Prabhu and Aravind Melligeri, Quest Global has emerged as one of the world's largest pure-play independent engineering services providers. The company operates more than 93 delivery centers across 18 countries and employs over 21,500 professionals who serve some of the world's most demanding industries. Its client roster includes globally recognized names such as Pratt & Whitney, Rolls-Royce, BMW, Airbus, and General Electric, reflecting the company's strong reputation for delivering mission-critical engineering solutions. The company's presence spans multiple high-growth sectors including aerospace, defense, automotive, energy, semiconductors, healthcare, medtech, and rail industries, providing a diversified revenue base and significant growth potential.

The investment by Hillhouse validates Quest Global's business model and positions the company favorably as it prepares for a potential public listing. The company's focus on long-term customer relationships, disciplined execution, and sustainable scaling across industries has enabled it to attract premium valuations from sophisticated institutional investors. Notably, Quest Global is also considering a reverse flip strategy that would involve relocating its parent entity's domicile from Singapore to India through a merger with its Indian subsidiary. This strategic move aims to facilitate a listing on Indian stock exchanges and would result in the relocation of the company's global headquarters to Bengaluru, further strengthening its ties to the Indian market where much of its delivery capacity is based.

Hillhouse's Strategic Investment in India's Technology Sector

For Hillhouse Investment, this transaction represents its largest investment in India's technology sector to date. The Singapore-based firm, founded in 2005 with initial seed capital from Yale University Endowment, has been systematically building its presence in India's thriving startup and technology ecosystem. Since 2010, Hillhouse has deployed approximately one billion dollars across Indian technology companies, backing successful ventures such as food delivery platform Swiggy, automotive marketplace CarDekho, fintech company Cred, and social media platform ShareChat. The Quest Global investment demonstrates Hillhouse's confidence in India-connected businesses and its willingness to deploy substantial capital into companies with strong operational execution and global market presence.

Hillhouse operates across multiple asset classes including public equities, private equity, private credit, and real assets, serving institutional clients globally. The firm's investment in Quest Global aligns with its broader strategy of backing disciplined, well-managed companies in high-growth sectors. This investment also follows Hillhouse's participation in other notable Indian technology transactions, though the firm narrowly missed out on acquiring BPO company GeBBS Healthcare Solutions, which was eventually acquired by Swedish investor EQT in an $870 million deal. The successful Quest Global investment reinforces Hillhouse's position as a significant player in India's investment landscape.

Existing Shareholders and Company Valuation Growth

Quest Global's cap table reflects participation from multiple top-tier investors who have backed the company at different stages of its growth journey. American private equity giant Carlyle Group holds a substantial 24 percent stake in the company, having invested in 2023 at a valuation of approximately $2 billion. Co-founder Ajit Prabhu retains a significant 42 percent ownership stake, ensuring founder leadership remains aligned with the company's long-term vision. Indian private equity firms ChrysCapital and True North invested $150 million into Quest Global in 2021, joining other institutional investors such as Onyx, Ocorian Singapore, JTC Trust, and Sanaka Growth on the cap table.

The valuation progression reflects strong investor confidence and the company's operational performance. Quest Global's ascension from a $2 billion valuation at Carlyle's investment in 2023 to the current $4.5 billion valuation demonstrates substantial value creation in just over two years. This represents a more than doubling of enterprise value and underscores the company's accelerating growth trajectory and market demand for its engineering services. The valuation increase also reflects the company's successful execution of its strategic initiatives and its positioning as an essential partner for global companies seeking specialized engineering expertise.

The investment by Hillhouse, combined with the company's strategic initiatives including the potential reverse flip to India, positions Quest Global for a successful public market debut. The company's combination of strong operational execution, diversified global client base, substantial delivery infrastructure across emerging markets, and institutional investor backing creates a compelling investment thesis. As the company moves closer to its eventual IPO, the backing of premium institutional investors like Hillhouse provides additional validation and momentum. Quest Global's journey from a startup founded by former GE engineers to a globally respected engineering services powerhouse serving Fortune 500 companies exemplifies the success stories emerging from India's entrepreneurial ecosystem, even as the company maintains global operations and prestige.

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