Bain Capital to acquire 24.98% stake in IIFL Wealth for over Rs 3,679 cr

Global investment firm Bain Capital announced on Thursday that it has agreed to acquire a 24.98 per cent equity stake in wealth and asset management firm IIFL Wealth Management Limited from General Atlantic Singapore Fund Pte and FIH Mauritius Investments Ltd, a wholly-owned subsidiary of Fairfax Holdings Corporation.  

Bain Capital proposed to acquire 22,155,000 equity shares of IIFL Wealth, with a face value of Rs 2, and constituting 24.98 per cent stake in the company at a price per share of Rs 1,661, which aggregates to a total consideration of Rs 36,799,455,000. 

The Letter of Agreement, inter alia, provides Bain Capital the right to nominate directors for the board of directors of IIFL Wealth, subject to specified shareholding thresholds, with effect from consummation of transactions under the agreement.

The transaction will be subject to regulatory and other customary approvals.

Karan Bhagat, Managing Director and Chief Executive Officer, IIFLWAM, said, “Since our inception 13 years ago, we continue to service our clients with unflinching commitment to innovation, consistency, transparency as well as to provide a trusted platform for all their Wealth and Asset Management needs. 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.”

Bain Capital Managing Director Pawan Singh said that IIFL Wealth has made a premier brand in wealth and asset management 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,” he added. 

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

IIFL Wealth is an investment and financial advisor to High-Net-Worth Individuals (HNI) and Ultra HNI segments in India and abroad, with aggregate assets of ~ $44 billion under management. It is headquartered in Mumbai, and has 900 employees in four major global financial hubs and 23 locations in India. 

Bain Capital, apart from private equity, invests across asset classes including credit, real estate, public equity and venture capital, and manages more than $155 billion. It has offices in Boston, Chicago, New York, Palo Alto, San Francisco, Dublin, London, Luxembourg, Madrid, Munich, Guangzhou, Melbourne, Mumbai, Hong Kong, Seoul, Shanghai, Sydney and Tokyo.

Also read: VC exits from Indian start-ups soar 10X to $14 bn in 2021: Bain & Co report