IIFL Wealth Management, one of the leading wealth management companies in the country, has announced that it will acquire the entire share capital of Chennai-based Wealth Advisors India (Wealth Advisors). IIFL Wealth will conclude the transaction for a consideration of Rs 235 crore in cash and cash equivalents. The transaction is subject to regulatory approvals.
The move is expected to further fortify ten-year-old IIFL Wealth’s presence in the south as Wealth Advisors has a strong presence in Chennai, Bangalore, Coimbatore and is also present in Mumbai and Pune.
Wealth Advisors is the brainchild of founder-director V Mahadevan and Pramod Kumar, who put together the founding team, roped in the current management team and built the sales force from scratch. Wealth Advisors is one of the largest wealth management firms in the south with ‘Assets Under Advice’ of about Rs 11,000 crore.
“The genesis of both the firms is similar as both are driven by an entrepreneurial culture and have sizeable employee ownership. The acquisition will give IIFL Wealth access to new client segments, a steady annuity-based revenue, and a very talented management and sales team,” IIFL Wealth Management said.
“While most of our growth has been organic, we have always been open to align with the right partners in the business,” said Karan Bhagat, founder, MD and CEO, IIFL Wealth Management.
“Besides a formidable team, Wealth Advisors has a couple of commonalities with us which include a strong alignment of culture with a highly client-centric approach,” he said.
“This deal brings us some top-quality talent by way of sales and non-sales teams and our combined effort will further strengthen our reach and offerings for the high net worth clients and ultra-high net worth clients,” Bhagat said.
“This move gives us the opportunity to scale up and establish deeper client relationships with the added advantages of the IIFL Wealth platform,” Pramod Kumar said.
“Their plethora of offerings in the wealth management space including asset management, trust and estate advisory, tax planning, corporate advisory, credit and leverage offerings is unmatched in the industry,” he stated.
The acquisition will bring all employees, including the research team, the sales team, the operations and support team and all the other staff of Wealth Advisors under IIFL Wealth.
Equirus Capital was the sole advisor to Wealth Advisors on the transaction.