Private equity firms are chasing wealth management firms to cash in on the potential in this sector.
In yet another deal in the wealth management space, ASK Wealth has raised an undisclosed amount from US based private equity firm Advent International. In a press release issued by the company, Advent International said that it has acquired a significant minority stake in ASK Group which has interests in investment and wealth management business in India.
The private equity firm has not disclosed the financial terms of this deal. Sources privy to the development told Cafemutual that Advent International is investing $125 million or Rs. 850 crore to acquire stake in ASK Group. This could not however be confirmed.
The transaction is the first investment that Advent has made in India from its new $13 billion global private equity fund, GPE VIII, and its third investment in India in the past two years following the purchase of equity stakes in Crompton Greaves Consumer Electricals and QuEST Global Services.
Founded in 1983, ASK group runs PMS, real estate investment management and private equity fund management business. ASK manages assets of over Rs. 29,480 crore (US$4.4 billion) across seven offices in India and has offices in Dubai and Singapore, catering to its international investor base. AMFI data shows that ASK wealth has received commission of Rs.11 crore and manages assets under advisory of Rs. 2443 crore as on March 2016.
There have been similar deals in the wealth management space in the past.
Earlier this year, UK based government fund CDC Group had expressed its interest in investing Rs. 1,000 crore in IIFL Wealth to acquire a 15% stake. In addition, IIFL Wealth has already raised Rs.1120 crore by selling 21% stake to global private equity fund General Atlantic Singapore Fund.
In October, Gopal Srinivasan, Chairman of TVS Capital, Narayan Seshadri, Chairman of Tranzmute Capital & Management and other investors had picked up 52% stake in Bengaluru based wealth management firm International Money Matters. Founded by Lovaii Navlakhi, International Money Matters is registered with SEBI as RIA and manages Rs. 850 crore of assets under management.
