Jacob Ballas, NYLIM to invest in India's Centrum Capital
Jacob Ballas and New York Life Investment Management (NYLIM) will invest in CentrumDirect, the foreign exchange business of India-listed financial services company Centrum Capital.
The investment will see the two firms, investing through Jacob Ballas Capital India Private and their joint vehicle NYLIM Jacob Ballas India Holdings IV, take a minority stake, according to a filing. Financial details of the transaction were not disclosed, but media reports indicated the total investment came to $50 million for a 30% stake.
The deal, which is subject to regulatory approval, is intended to support Centrum Direct’s expansion plans. The division is the biggest revenue generator for Centrum Capital, with money exchange counters in 14 airports in India and foreign exchange investment services, travelers’ checks and prepaid ATM cards provided through Buyforex.com.
Centrum recently launched its first private equity fund, Kalpavriksh, with a target of INR5 billion ($75.3 million) to invest in mid-sized unlisted companies with a focus on the financial services, education, healthcare and fast-moving consumer goods sectors. The company also co-manages real estate funds with IPAL Fund Managers.
Founded in 1977, Centrum provides a wide range of advisory and financial services in the areas of fundraising, infrastructure development, government borrowing, corporate restructuring and money market intermediation. It also operates on the retail level, offering advisory services and managing financial services including mutual funds and insurance products.
In its most recent annual report Centrum recorded revenue of INR511 million and profit of INR61 million for the year ended March 2016, both down from INR738 million and INR95 million respectively for the year ended June 2015.
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