Advent picks up stake in Indian wealth manager

The deal to acquire a part stake in the ASK Group is Advent International’s first Indian investment from its latest buyout fund.

Global buyout house Advent International has acquired a significant minority stake in Mumbai-headquartered wealth management business ASK Group, according to a company statement.

Financial details of the transaction were not disclosed but a source familiar with the matter said the purchase price was around $125 million. Advent has made the investment through its 2015-vintage Advent Global Private Equity VIII, which closed on $13 billion against a $12 billion target.

The ASK Group is one of India’s largest wealth managers by assets with over $4.4 billion across private equity, real estate, venture capital, debt and equity structures. Half of its business is focused on asset management, while the remaining half provides wealth advisory services to family offices.

Sunil Rohokale, ASK Group’s chief executive officer, said the transaction allows the company to scale up its existing business, and explore new business opportunities domestically and internationally.

“With the help of the Advent team, ASK plans to build an international franchise for Indian investment opportunities focusing on institutional investors and family offices,” Rohokale commented.

The firm has almost fully deployed its 2012-vintage $100 million private equity vehicle, ASK Pravi Fund, and has plans to launch its second vehicle next year, Rohokale told Private Equity International.

Advent, with close to $30 billion under management, invests across five industries – business and financial services, healthcare, industrial, retail and consumer, and technology media and telecom (TMT). This is the firm’s first investment in India from its latest fund and its third investment in the country in the last two years. In April last year, an Advent-led consortium which included Singapore state investment company Temasek Holdings acquired the consumer electricals business Compton Greaves. And in February this year Advent teamed up with Singapore sovereign wealth fund GIC and Bain Capital to invest $350 million in QuEST Global, an engineering solutions provider headquartered in Singapore.