TA invests in India mutual funds business
TA Associates has acquired a minority stake in Prudent Corporate Advisory Services, an India-focused provider of mutual funds and other wealth management products.
The new capital will support Prudent’s planned expansion as it looks to tap new geographical markets and customers within India. TA expects its financial services experience to aid in this project as well, according to a release. Financial details have not been disclosed. Aditya Sharma, senior vice president at TA, and the firm’s India country head Dhiraj Poddar will join Prudent’s board.
Prudent provides personal and corporate investment planning services through mutual funds, bonds, broking, and insurance products. The company’s network includes over 10,000 independent financial advisors, which it provides with training and development services, back office services, online client management platforms, and sales and marketing support. Prudent currently has over INR180 billion ($2.6 billion) in assets under management (AUM).
The total AUM of India’s asset management industry has grown at a compound annual rate of 18% over the past 10 years, standing at around $338 billion as of March 2018. Over the next five years growth is expected to remain strong, with AUM reaching $936 billion by 2023.
“Due to growing investor awareness and increasing mutual fund penetration, we anticipate that the Indian asset management space will experience significant long-term growth,” said Poddar. “We believe that Prudent is well-positioned to capitalize in this large and developing marketplace and can provide notable benefits to India’s growing wealth management sector.”
TA is a growth-stage investor that operates on a global basis, deploying $1.5-2 billion per year. Previous financial services investments in Asia include the acquisition of a minority stake in New Zealand-based fund manager Fisher Funds last year and supporting the management buyout of Goldman Sachs Asset Management’s Australian equities and fixed income business in 2016.
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