IIFL Wealth Management is set to acquire a majority stake in Wealth Advisors, a private wealth management company based in Chennai, a province in the south of India. The deal is valued at £57m.
“The promoters will sell a 80% stake and the amount paid for the deal will have a mix of cash and stock options,” a source close to the deal told local media outlet India Times.
Founded in 2008, IIFL Wealth Management is one of the countrys’s biggest wealth managers, advising more than 12,000 families in the high-net-worth-individuals (HNWI) and Ultra-HNWI segments in India and abroad.
Headquartered in Mumbai, IIFL Wealth has more than 800 employees and a presence in 23 locations in India and around the world.
“As part of our normal process, we keep evaluating interesting businesses, which can help us grow. Prior to the successful completion of any deal, we would avoid commenting on any specifics,” said Karan Bhagat, head of IIFL Investment Managers, to the publication.
Established in 2004, Chennai-based Wealth Advisors is a professionally managed organisation that offers private wealth management, family office and investment adviser services with a strong presence in South India with 1180 clients as on May this year.
The number of wealthy Indians having assets of over $50 million is likely to grow by nearly 71% to 4980 by 2022 from 2980 in 2017 according to a report by global consultancy firm Knight Frank.