Global private equity firm Bain Capital has agreed to acquire a 24.98% equity stake in India-based IIFL Wealth Management from the General Atlantic Singapore Fund and FIH Mauritius Investments, a wholly owned subsidiary of Fairfax India Holdings Corporation.
The transaction is subject to regulatory and other customary approvals. Financial terms of the deal were not disclosed.
IIFL Wealth Management has $44bn (£34bn, €40bn) in assets, as of 31 December 2021.
The firm serves high net worth and ultra-high net worth individuals, family offices, and institutions through a range of solutions ranging across wealth management, asset management, lending solutions and estate planning.
Karan Bhagat, managing director and chief executive, IIFL Wealth Management, said: “Since our inception 13 years ago, we continue to service our clients with unflinching commitment to innovation, consistency, transparency as well as to provide a trusted platform for all their wealth and asset management needs.
“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 the management team of 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.”
In December 2021, the proposed acquisition of LV= by Bain Capital was blocked after months of controversy.