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Bain Capital, a leading global private multi-asset alternative investment firm, has agreed to acquire a 24.98 per cent equity stake in IIFL Wealth Management Ltd, a wealth and asset management firm in India from General Atlantic Singapore Fund Pte Ltd and FIH Mauritius Investments Ltd, a wholly-owned subsidiary of Fairfax India Holdings Corporation.
Bain Capital will acquire 22 million equity shares of IIFL Wealth Management, constituting a 24.98 per cent stake in the company for ₹1,661 apiece, aggregating to a total consideration of around ₹3,679.95 crore by way of a share purchase agreement executed on March 30, 2022, with General Atlantic and FIH Mauritius, IIFL Wealth Management informed the exchanges. The transaction is subject to regulatory and other customary approvals.
Founded by first-generation entrepreneurs, Karan Bhagat, MD & CEO, and Yatin Shah, Joint-CEO, in 2008, IIFL Wealth Management has around $44 billion in assets (as of December 31, 2021). The wealth and alternative asset manager caters to the needs of high net worth and ultra-high net worth individuals, family offices, and institutions through a comprehensive range of tailored solutions ranging across wealth management, asset management, lending solutions and estate planning.
‘Strong leadership franchise’
Bhagat said, “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. We look forward to having them on board.”
Pawan Singh, Managing Director at Bain Capital, said, “We are delighted to be partnering with IIFL Wealth. They have built the premier brand in wealth and asset management in India on the back of innovation, customer centricity and consistent performance. 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.”
J.P.Morgan acted as the exclusive sell-side financial advisor on the transaction. Axis Capital and NovaDhruva acted as financial advisors to Bain Capital. At 10.02 am, IIFL Wealth was trading at ₹1,719.35 on the BSE, up ₹52.85 or 3.17 per cent.
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