PAG to pick 51% stake in Edelweiss Wealth Management for $297m

Photo: Ramesh Pathania/Mint

Private equity investor PAG will make a 2,200 crore investment in Edelweiss Wealth Management (EWM) to pick up a 51% stake in the wealth management business of Edelweiss Group, the company said in a statement on Thursday.

This partnership will result in unlocking value for shareholders and accelerating business growth, the statement said. The investment will close after customary regulatory approvals.

PAG will become a majority owner of EWM, which is a part of Edelweiss Global Investment Advisors (which also houses Edelweiss Asset Management, which is not part of the investment).

“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,” said Rashesh Shah, chairman and chief executive officer of Edelweiss group.

EWM’s demerger and listing on stock exchanges are expected in the coming 12-18 months.

The wealth management business, including capital markets, provides wealth management services to over 2,400 of India’s wealthiest families as well as 610,000 high net-worth individuals and other affluent clients.

EWM has grown its customer assets under advice with around 44% cumulative annualized growth rate from Rs185 billion in fiscal 2015 to Rs1.27 trillion in the first quarter of fiscal 2021.

“PAG is committed to India’s market as we strongly believe in the long-term growth of the Indian economy. The investment in Edelweiss Wealth marks a milestone in PAG’s investments in the India market,” said Weijian Shan, Chairman and CEO of PAG.

Edelweiss is also planning more such strategic stake sales in its other businesses such as general insurance and asset management to unlock value in these businesses.

“We have started putting in place a path that will see EWM demerged and listed in due course. We are also guided by the board to seek investment partners in Edelweiss Asset Management (EAM) and General Insurance businesses, and EAM will also be demerged and listed thereafter,” said Shah in a statement.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.