PAG Invests Rs 2,366 crore in Edelweiss Wealth Management

Edelweiss Group and PAG on Monday, March 23, 2021, announced an investment by PAG's private equity strategy in Edelweiss Wealth Management (EWM). This partnership will result in unlocking long term value for shareholders and accelerating business growth.

PAG has invested Rs 2,366 crore in EWM, including primary and secondary investment. In addition, PAG is also acquiring the entire ownership of the prior investors in EWM, Kora Management (Kora) and Sanaka Capital (Sanaka), taking its stake to 61.5 per cent. Edelweiss will continue to hold a 38.5 per cent stake in EWM as earlier envisaged, with the option to increase it further to up to 44 per cent.

PAG's primary capital infusion into the wealth business will further strengthen the equity base and provide growth capital. PAG and Edelweiss will work together towards demerger and the eventual listing of the business, paving way for unlocking value.

Rashesh Shah, Chairman & CEO, Edelweiss Group said, "The partnership with PAG is a strong endorsement of the quality of businesses we have built to scale over the years. Our focus will continue to be on enhancing the value of the franchise while simultaneously exploring avenues to unlock this value for the shareholders."

Nikhil Srivastava, Partner and Managing Director, Head of India Private Equity, PAG said, "EWM is one of India's leading wealth management companies with products and services that are highly regarded by customers. We look forward to leveraging PAG's global experience to drive innovation and transformation to further strengthen EWM's market position and create long-term value for all stakeholders."

The Rs 300 trillion Indian wealth management industry has been expanding rapidly at a five-year CAGR of 11.3 per cent. With a strong estimated growth trajectory of 12.5 per cent per year going forward, it is expected to reach Rs 540 trillion in the next five years, presenting a large opportunity space for EWM.

Edelweiss Wealth Management (EWM) has reported revenues of Rs 880 crore and profit after tax of Rs 180 crore for the nine months ended on December 31, 2020. Meanwhile, the company informed that the Board of Directors will meet on Thursday, 25 March 2021, to consider, the declaration of interim dividend.

Edelweiss Group is India's leading diversified financial services conglomerate and as one of India's largest wealth management platforms, it is servicing over 2,400 of India's wealthiest families as well as 670,000 affluent and high net-worth individuals. EWM has consistently outpaced the market while making rapid strides in industry rankings as is evident in the customer assets under the advice that now amounts to Rs 1.45 trillion, growing with a 43 per cent CAGR from just Rs 185 billion around 6 years ago in 2015. The capital markets and advisory practice has led marquee transactions over the years.

PAG is a leading Asia-focused private investment manager, with strategies including private equity, private debt, real estate and hedge funds. With more than 200 investment professionals in 11 key offices around the world, PAG delivers value to investors by seeking out leading companies and investing to help them reach their full potential. PAG currently manages US$40 billion in assets on behalf of more than 150 institutional investors from Europe, North America, Asia, Australia and the Middle East and PAG is the leading Asia-focused investment group.