Global private equity firm Bain Capital has reportedly announced the acquisition of a 24.98% stake in IIFL Wealth Management Limited for USD 485.6 million.

Current investors Fairfax India Holdings Corporation and General Atlantic will make a partial exit from IIFL which is part of the financial services company IIFL Group.

Bain Capital is acquiring the stake at a per price share of USD 21.94 (Rs 1,661) for an overall consideration of USD 486 million (Rs 3679.95 crore) through a share purchase agreement with FIH Mauritius Investments Ltd and General Atlantic Singapore Fund Pte. Ltd., as per IIFL Wealth’s regulatory filing. However, the exact shareholding following the acquisition is yet to be revealed.

The agreement will be through BC Asia Investments X Ltd, the investment vehicle of Bain Capital. The deal will be executed subject to customary and regulatory approvals.

As of December last year, General Atlantic owned nearly 21% of IIFL Wealth while a further 13.64% was owned by FIH Mauritius Investments Ltd, Fairfax India Holdings Corporation’s wholly-owned subsidiary. Similarly, private equity firm PAG acquired a majority stake in Edelweiss Wealth Management two years ago.

Mumbai-based IIFL is among the leading alternative asset and wealth managers in the country with assets worth USD 44 billion. Founded by first-generation entrepreneurs Yatin Shah, the Joint CEO, and Karan Bhagat, the CEO and MD, the company offers asset management, wealth management, estate planning services, and lending solutions to individuals, offices, families, and institutions with high and ultra-high net worth.

The company has nearly 900 employees and a presence across four major global financial hubs and twenty-three locations in the country. Its suite of products comprises portfolio management services (PMS), alternative investment funds (AIFs), and mutual funds (MFs) expanding across asset classes of private and public equity, credit solutions, fixed income, and real estate.

Source credit:

https://www.vccircle.com/bain-capital-to-acquire-25-stake-in-iifl-wealth-general-atlantic-fairfax-part-exit