Earlier this week, PAG said it had acquired a 61.5% stake in EWM for Rs2,366 crore and also acquired another 10% from previous investors of the company Kora Management and Sanaka Capital
Mumbai: Edelweiss Wealth Management (EWM), which has been acquired by Asia focused investment firm PAG, will seek inorganic opportunities to grow its business going ahead, said a senior executive of the firm in an interaction with Mint.
"We continue to look for inorganic growth opportunities in the Wealth Management space and think that there are quite a few options available in the market. Selectively we are also looking at the FinTech space, but that is more from a point of enhancing capabilities," said Nitin Jain, MD and CEO of Edelweiss Wealth Management.
Earlier this week, PAG announced that it had acquired a 61.5% stake in EWM for Rs2,366 crore. Apart from picking up a 51.5% stake from Edelweiss Financial Services Ltd, the investment firm also acquired another 10% from previous investors of the company - Kora Management and Sanaka Capital.
"The transaction gives us meaningful access to not only long-term capital, but also to their (PAG) best practices along with a strong brand and their pan Asia-Pacific network," said Jain.
"The net worth of the company will go up to ₹1600 crore from ₹1200 crore. The capital infusion will largely be used towards enhancing our margin financing and ESOP financing products catering to our private banking clients," added Jain.
The transaction involved a primary capital infusion of around Rs450 crore into EWM.
"Edelweiss Wealth Management has a strong reach and presence across its various target client segments that we will look to enhance and strengthen. We look forward to leveraging PAG’s global experience to drive innovation and transformation to further strengthen Edelweiss Wealth Management's market position and create long-term value for all stakeholders," said Nikhil Srivastava, Partner and Managing Director, Head of India Private Equity at PAG.
While PAG has acquired a controlling stake in the company, Srivastava said that no decision has been made as of now to rebrand the business.
PAG and Edelweiss plan to demerge and list the business going ahead, the process for which will start soon.
"The shareholders of Edelweiss Financial Services Ltd will be allotted the 38.5% stake. We are looking to work towards demerger and the eventual listing of the business, paving way for unlocking value, said Jain.
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