Pacific Alliance Group to take majority stake in Edelweiss Wealth Management
Asia-focused investment group Pacific Alliance Group (PAG) has signed a deal worth $300 million with Indian financial services firm Edelweiss Group to acquire a stake of 51% in its wealth management business, which operates as Edelweiss Wealth Management (EWM).
Claimed to be the rank two among the non-bank wealth management businesses in India, Edelweiss Wealth Management, which includes capital markets, serves 2,400 plus wealthiest families in India along with nearly 610,000 high net-worth individuals and other affluent clients.
The Indian wealth management company is said to have grown its customer assets under advice with a nearly 44% cumulative annualized growth rate from $2.5 billion in the fiscal year 2015 to $17.3 billion in the first quarter of the fiscal year 2021.
According to Edelweiss Group, its partnership with Pacific Alliance Group will result in unlocking shareholders’value besides accelerating business growth courtesy of the capital, business expertise, and global experience of the investment group.
The Indian financial services group said that the stake sale to Pacific Alliance Group is in line with its plans to build capitalized and self-sufficient businesses independently. Edelweiss Group further said that the transaction marks the largest equity it has secured till date and is a clear endorsement of the value it has created for the Indian wealth management business.
Rashesh Shah – Edelweiss Group Chairman and CEO said: “In PAG we have found a great partner with global experience and strong capabilities. This investment endorses our core strategy of incubating businesses, building value and growing them into market leaders as they gradually move from inter-dependence to independence. We remain committed to unlocking value for businesses and shareholders alike and remain future-ready to ride the economic trajectory post COVID.”
The transaction is the maiden majority equity investment in India for Pacific Alliance Group, which boasts of $40 billion in assets under management.
Weijian Shan – Pacific Alliance Group Chairman and CEO said: “PAG is committed to India’s market as we strongly believe in the long-term growth of the economy. The investment in Edelweiss Wealth marks a milestone in PAG’s investments in the India market.”
The transaction, which is subject to receipt of regulatory approvals, is expected to be wrapped up in the next four to six months.