US PE major Advent picks up 41% stake in Ask Group for $125 million
Leading wealth management player Ask Group has sold 41 per cent stake to Boston-based private equity major Advent International for $125 million.
Founders and other promoters, who include the top management, will retain the remaining 59 per cent in the city-based company, which is the largest in private wealth management firm in the country with an asset under management of close to Rs 30,000 crore, Ask Group managing director Sunil Rohokale said.
Though he refused to reveal the value of the deal, sources said, Advent is said to have paid $125 million for 41 per cent. "Out of our total AUM of around Rs 30,000 crore, only $350 million are foreign capital. So this capital infusion will not only help widen our portfolio, but will also help us get foreign clients," Rohokale said on Wednesday.
Stating that Advent will help in building capacities to raise foregin capital, he said, "Partnership will focus on accelerating Ask Group's growth by strengthening its team, launching new products and expanding internationally."
"With the help of the Advent team, we plan to build an international franchise for investment opportunities focusing on institutional investors and family offices," he added.
Founded in 1983, Ask Group is the country's largest equity PMS provider, a leading real estate investment manager and one of the top wealth managers. The group also has a PE fund management business and has offices in Singapore along with a capital market licence, and in West Asia, he said. When asked about board representation of Advent in Ask, he said they will get two board positions post the deal.
Rohokale said of the Rs 30,000 crore AUM, Rs 18,000 crore are in wealth management portfolio, Rs 9,000 crore in equity PMS, Rs 5,000 crore in realty PE and Rs 5,000 crore in pure equities.
The transaction is the first investment that Advent has made in the country from its new $13 billion global PE fund, and its third in the country in the past two years following deals in Crompton Greaves Consumer Electricals and Quest Global Services.