Bain Capital acquires 25% in IIFL Wealth for Rs 3679.95 cr

The Boston, Massachusetts headquartered firm will buy shares from General Atlantic Singapore Fund and FIH Mauritius Investments, a wholly-owned subsidiary of Fairfax India Holdings Corporation at Rs 1661 apiece.

The transaction is subject to regulatory and other customary approvals.

ET first reported about the potential share sale on March 24.

“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,” said Karan Bhagat, Managing Director and Chief Executive Officer, IIFLWealth Management.

General Atlantic had acquired a 21.6% stake in IIFL Wealth in October 2015 for Rs 1122 crore. Led by India-born Prem Watsa, Fairfax first invested in IIFL in 2011 when it acquired a 9% stake through Hamblin Watsa Investment Counsel Fund. The fund currently has around 13.6 percent in IIFL Wealth.

“We are delighted to be partnering with Karan, Yatin and 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,” said Pawan Singh, Managing Director at Bain Capital.

Founded in 2008, IIFL Wealth offers solutions for high and ultra-high net worth individuals, family offices and institutional clients, according to its website. The Mumbai-based firm has more than $44 billion in assets under management. Based in Mumbai, IIFL Wealth & Asset Management has more than 850 employees and a presence in 4 major global financial hubs and 23 locations in India.

The company manages wealth and assets of high net worth and ultra-high net worth individuals, family offices.

JP Morgan acted as the exclusive sell-side financial advisor on the transaction. Axis Capital and NovaDhruva acted as financial advisors to Bain Capital.