General Atlantic backed IIFL Wealth Management, is in final stages to acquire a majority stake in Chennai based Wealth Advisors, a private wealth and family officer manager, valuing it at Rs 500 crore. “The promoters will sell a 80% stake and the amount paid for the deal will have a mix of cash and stock options,”said a source close to the deal.
Established in IIFL Wealth Management, is one of the leading players in the wealth management business and offers a large number of products across wealth management, asset management, alternative investment funds (AIF), venture capital, private equity and family office business.
“Äs part of our normal process, we keep evaluating interesting businesses, which can help us grow inorganically. Prior to the successful completion of any deal, we would avoid commenting on any specifics,”says Karan Bhagat, MD and CEO, IIFL Investment Managers. “We would not like to comment on this,” said Pramod Kumar, Co-founder, Wealth Advisors. ..
Founded in 2008, Mumbai based IIFL Wealth Management is one of the top wealth managers with assets under advice and distribution of Rs 1.4 lakh crore. It is the investment advisor to more than 12,000 influential families in the High Net Worth Individuals (HNI) and Ultra HNI segments in India and abroad and has an employee strength of 800 people.
In IIFl Wealth Managers, the parent company IIFL Holdings has a 53.64% stake, General Atlantic, 21.52%, employees 20% and foreign financial investors 5% stake. Headquartered in Mumbai, IIFL Wealth has more than 800 employees and a presence in 9 major global financial hubs and 23 locations in India and around the world. Established in 2004, Chennai based Wealth Advisors is a professionally managed organisation that offers private wealth management, Family Office and Investment Adviser services with a strong presence in South India. As on May 2018, it has Assets under Advisory of Rs.10,217 crore with 1180 clients.
Last month, IIFL Wealth management, raised Rs 745.71 crore by selling 5.1% stake to a clutch of investors. The company issued 44.90 lakh shares to WF Asian Reconnaissance Fund, Rimco (Mauritius) Limited, Amansa Holdings, General Atlantic Singapore Fund, Steadview and HDFC Standard Life Insurance. The deal values the wealth management firm, one of the largest in the country, at Rs 14,621 crore.
The number of wealthy Indians having assets of over $50 million is likely to grow by nearly 71% to 4980 by 2022 from 2980 in 2017 according to a report by global consultancy firm Knight Frank.
Source: Economic Times