Bain Capital buys 24.98% stake in IIFL Wealth for nearly Rs 3,700 cr

Industry:    2 months ago

Private equity firm Bain Capital will acquire a 24.98 per cent equity stake in IIFL Wealth Management from General Atlantic Singapore and FIH Mauritius, which is owned by Indian-Canadian billionaire Prem Watsa’s company Fairfax.

Bain Capital will acquire 22.15 million shares at Rs1,666 apiece for nearly Rs 3,700 crore. Shares of IIFL Wealth closed at Rs 1,666.5 on Wednesday.

The transaction won’t trigger an open offer as it is just below the 25 per cent threshold. Bain Capital has said the transaction is subject to regulatory and other customary approvals.

General Atlantic bought the stake in October 2015 for Rs 1,122 crore. IIFL Wealth was listed in September 2019 after demerging from parent IIFL Finance. As of December 2021, General Atlantic Singapore held 21 per cent and FIH Mauritius (Fairfax) held a 13.64 per cent stake in IIFL Wealth

“The company is well poised to benefit from secular tailwinds of wealth creation in the economy, greater financialisation, and increasing penetration of formal wealth management. We look forward to working with the team on the next phase of IIFL Wealth’s growth journey,” said Pawan Singh, Managing Director at Bain Capital.

“Bain Capital’s investment is a testament to our strong leadership franchise in the financial services space, and in our team’s ability to continue to execute and grow the business to scale,” said Karan Bhagat, MD & CEO, IIFL Wealth.

IIFL Wealth managed $44 billion (Rs 3.3 trillion) in assets as on December 31, 2021. The company offers tailored solutions ranging across wealth management, asset management, lending solutions and estate planning to the high net worth and ultra-high net worth individuals, family offices, and institutions. IIFL Wealth has a market capitalisation of nearly Rs 15,000 crore.

JP Morgan acted as the exclusive sell-side financial advisor on the transaction. Axis Capital and NovaDhruva acted as financial advisors to Bain Capital.