Ward Ferry, General Atlantic to join $109m round for India's IIFL Wealth
General Atlantic and Hong Kong-based PE firm Ward Ferry have agreed to join a INR7.5 billion ($109 million) investment in IIFL Wealth Management, a subsidiary of India’s IIFL Holdings.
According to a regulatory filing, IIFL Wealth will issue 4.49 million shares at INR1,661 each to a group of investors including, in addition to Ward Ferry and General Atlantic, Amansa Capital; Rimco, a family office investment arm; Hong Kong-based hedge fund Steadview; and HDFC Standard Life Insurance. The shares will represent a 5.1% stake in the company following the issue.
Ward Ferry, Rimco and Amansa will take 1.1 million shares each, General Atlantic will take 567,000 shares, Steadview will take 347,000 and HDFC will take 300,000. IIFL will retain a majority stake following the investment. The company plans to use the capital to grow its business internationally, improve its credit platform and support its own alternative investments strategies.
Founded in 2008, IIFL Wealth offers a range of financial services including advisory, wealth structuring solutions, asset management, and onshore and offshore distribution services to over 10,000 high net worth families in India.
According to IIFL's most recent annual report, IIFL Wealth's revenue for the year ended March 2017 came to INR4.5 billion, representing 9.7% of IIFL's overall revenue, compared to INR4 billion and 10.1%, respectively, for the prior year. The division's net profit dropped from INR1 billion to INR864 million over the same period.
The company also operates IIFL Wealth Finance, a non-banking finance company (NBFC) launched in 2016 that lends to high net worth individuals. IIFL Wealth Finance was capitalized with a INR11.2 billion investment provided by General Atlantic in 2015. The NBFC's loan book stood at INR36 billion as of March 2017.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.