The family office of Ranjan Pai, the founder of Manipal Group, has reportedly acquired the debt previously held by Davidson Kempner in Byju's subsidiary, Aakash Education Services (AESL), for Rs 1,400 crore. The deal which concluded on Friday signifies Davidson Kempner's exit from the firm. 

An entity owned by Pai purchased all the non-convertible debentures (NCDs) of Davidson Kempner on NSE's Cbrics platform.

Earlier, Byju's parent company, Think & Learn had obtained a Rs 2,000-crore loan from Davidson Kempner by using founder Byju Raveendran's shares in Aakash Education Services as collateral. Although Davidson Kempner released the first tranche of Rs 800 crore in May, the remaining amount was not disbursed, citing breaches of covenants by Byju's. This raised concerns about founder Raveendran's control over AESL.

Raveendran, who personally owned 27 per cent of the company, had pledged these shares to Davidson Kempner. The ownership of these shares has now shifted to Ranjan Pai's family office.