Mumbai: IIFL Wealth Management Limited has acquired Wealth Advisors India, a Chennai based wealth management firm for a total consideration of Rs 235 crore. Wealth Advisors, will become a wholly owned subsidiary of IIFLW and its employees will become part of IIFL Wealth , entitled to agreed employment benefits.
Mumbai-based IIFL Wealth Management has assets under advice and distribution of Rs 1.4 lakh crore. It is the investment advisor to more than 10,000 families in the HNI and Ultra HNI segments in India and abroad, employing 900 people.
In IIFL Wealth Managers, the parent company IIFL Holdings has a 53.64% stake, General Atlantic 21.52%, employees 20% and foreign financial investors 5%. IIFL Wealth has presence in 8 countries and 23 locations in India.
Established in 2004, Chennai-based Wealth Advisors offers private wealth management, family office and investment adviser services, with a strong presence in South India. As on September 2018, it has assets under advisory of Rs10,950 crore, with 1,275 clients.
In September and August earlier this year, Anand Rathi Wealth Managers and ASK Investment Managers, filed their draft red herring prospectus (DRHP) with SEBI to raise money through an initial public offer (IPO), as they seek to expand their business.
Analysts believe wealth management is likely to be one of the fastest growing industries in the coming years. The number of wealthy Indians having assets of more than $50 million is likely to grow by nearly 71% to 4,980 by 2022 from 2,980 in 2017, according to a report by global consultancy firm Knight Frank.
As per an October 2018 report by Boston Consultancy Group, India is the 5th largest Asian market in number of affluent, HNW, and UHNW individuals. Indias personal financial wealth which stands at $3 trillion is forecasted to grow to $5 trillion by 2022. Post demonetization, with the conversion of physical assets to financial assets, there has been a sharp growth in demand for wealth management.