Global private equity firm Advent International finds itself addressing investor concerns over its portfolio management strategies, particularly regarding exit mechanisms and management changes across its listed companies. Market participants and institutional investors have raised questions about value creation and operational continuity in several of Advent's key investments.

The spotlight on Advent's portfolio strategies has intensified following stakeholder feedback on three primary areas of concern: the timing and execution of exits, management transitions, and subsequent stock performance in companies where Advent held controlling positions.

Crompton Greaves Consumer Electricals Exit Analysis

Advent's exit from Crompton Greaves Consumer Electricals has drawn particular attention from investors. The private equity firm completed its final tranche of exit in 2021, selling shares at ₹400.00 per piece. The consumer electricals stock currently trades around ₹250.00 per share levels, representing a significant decline from Advent's exit price.

Investors have expressed concerns that Crompton Greaves Consumer Electricals was left without clear direction following Advent's departure. However, Advent has clarified its position, stating that it created 4.3 times value for shareholders between 2015-2021. The firm emphasized that it brought in a new management team in 2015 when it invested and became a promoter.

"The MD and CEO of Crompton only changed in April 2023, which was 22 months after Advent sold and resigned from the board. Over that time, Crompton was a board managed company with zero Advent involvement," Advent explained when addressing concerns about management disruption.

Eureka Forbes Performance Under Scrutiny

In February 2024, Advent International sold a minority stake in Eureka Forbes at ₹979.00 per share. The stock now trades at approximately ₹600.00 levels, marking a notable decline from the sale price. Advent had implemented leadership changes at Eureka Forbes following its acquisition in 2022.

Despite the stock performance concerns, Advent maintains that it has achieved 3x value creation for other shareholders over 3.5 years. The firm brought in a new management team upon its 2022 investment and reports no subsequent changes at the MD, CEO, or CFO levels. "Business has done very well over the same time-period so there is no business disruption," Advent stated.

Cohance Lifesciences Timing Questions

The situation at Cohance Lifesciences has raised additional questions about timing and communication. Advent sold part of its stake in September 2025 at ₹906.00 per share, with the stock currently trading around ₹500.00 levels. Notably, this stake sale occurred weeks before the company's CEO resignation in October 2025.

Advent maintains its commitment to Cohance's long-term growth despite the management transition. "While there have been select management changes, the business continues to be led by a strong executive chair along with three CEOs for each of the business units," the firm explained. As a majority shareholder with approximately 58% ownership post-sale, Advent emphasized its continued commitment to the company's performance and growth.

Investor Relations and Value Creation Defense

Throughout these discussions, Advent International has consistently highlighted its value creation track record across portfolio companies. The firm has addressed concerns by providing specific multiples and timelines, while clarifying its role and responsibility periods in each investment.

The private equity firm's responses indicate a focus on distinguishing between periods of active involvement and post-exit performance, particularly emphasizing that operational decisions following complete exits fall under the responsibility of respective company boards rather than Advent's oversight.

Advent Hotels International Limited has been penalized by both major Indian stock exchanges for delayed submission of its financial results for the quarter ended September 30, 2025. The company received notices on December 16, 2025, imposing fines for non-compliance with regulatory requirements.

Penalty Details

The regulatory penalties imposed on the company are as follows:

Reason for Delay

The compliance issue stemmed from regulatory interpretation confusion following the company's recent listing. Advent Hotels International was listed on November 13, 2025, pursuant to a Composite Scheme of Amalgamation and Arrangement. Based on their initial understanding of Regulation 33(3)(j) and legal advice received during the listing process, the company believed financial results could be submitted within 21 days from the listing date or the standard 45-day timeline from quarter-end, whichever was later.

However, subsequent exchange guidance and clarifications received on November 17, 2025, revealed that the 21-day reference under Regulation 33(3)(j) applies specifically to entities listed through Initial Public Offerings (IPOs), not to entities listed through schemes of arrangement.

Company's Response

Upon receiving the clarification, Advent Hotels International immediately took corrective action. The company convened its Audit Committee and Board Meeting, with the Board Meeting to approve the financial results held on November 28, 2025. The required regulatory filings were completed thereafter.

The company emphasized that the delay was unintentional and arose solely due to the bona fide interpretational issue regarding regulatory requirements for scheme-based listings versus IPO listings.

Payment and Compliance

Advent Hotels International has committed to remitting the total fine amount of ₹1,41,600 within the stipulated 15-day period. The company will submit the UTR (Unique Transaction Reference) and proof of payment to both stock exchanges immediately upon remittance. The management stated that the financial impact is limited to the penalty amount, with no other operational or business implications expected from this regulatory matter.