Karan Bhagat dwells on IIFL Wealth's quarterly results, the sustainable growth witnessed in ARR, and the tailwinds in the wealth and asset management industry.
The wealth management company reported earnings for the June-ended quarter with a sequential improvement in revenues to the tune of nearly 7 percent and it now stands at Rs 283 crore for the quarter.
Speaking in an interview with CNBC-TV18, Bhagat said, “Transaction fee is coming down and clients who are either portfolio management clients with us or they pay us an advisory fee, we charge practically zero on transaction. So, effectively our execution services are practically zero.”
On business, he said, “Within the alternate asset space, we have built a fairly large business of Rs 30,000-35,000 crore split into four categories - the listed equity, the unlisted equity, structured credit as well as a few long-short strategies. So these 4 together largely comprise the alternate asset space.”
“Both wealth management and asset management, fortunately for us, have a large tailwind for the next 2-10 years and both will continue to grow. The alternate asset business is a young industry and therefore, the percentage growth there may be higher,” said Bhagat.