Boutique bankers build a fortune on sale of Avendus Capital

India’s financial services sector has received a flush of Japanese money in recent months

Avendus Capital has advised on hundreds of transactions since 1999, lately turning into one of India’s fastest growing dealmakers by helping emerging tech tycoons to raise money.

Now, founders Ranu Vohra, Kaushal Aggarwal and Gaurav Deepak have made a fortune themselves. On Wednesday, Mizuho Financial Group Inc. said it will acquire KKR & Co’s more than 60% stake in the Mumbai-based investment bank, and is seeking approval from other holders to increase that to 78.3%, for 47 billion rupees ($520 million) overall.

At that price, the three founders would each own stock worth about $35 million based on their stakes of 5.5%, according to filings reviewed by the Bloomberg Billionaires Index, which is valuing their holdings for the first time. A spokesperson for Avendus declined to comment.

The deal shows hows finance founders in India are getting rich as the sector’s rapid growth attracts a wave of mergers and stock listings. Other examples include private banker Karan Bhagat, whose 360 One WAM Ltd. announced a deal with Switzerland’s biggest wealth manager UBS Group AG in April, and the founders of India’s top broker Groww which listed last month.

India’s financial services sector has received a flush of Japanese money in recent months. The bidding process for Avendus received interest from Nomura Holdings Inc. and Carlyle Group Inc., according to people familiar with the matter.

Avendus was founded by Vohra, a former banker at Tampa-based Communications Equity Associates and investment bankers Aggarwal from Kotak Mahindra Bank Ltd and Deepak from ICICI Bank Ltd. While Deepak and Aggarwal will remain shareholders in the bank, Vohra is selling his stake and will depart once the transaction is completed.

For the first two decades since its founding, Avendus mostly advised on private equity and mergers and acquisitions. But since the pandemic, the equity capital market division of the firm has leaped forward taking on investment banking giants and their billionaire clients. These include initial public offerings of SoftBank Group Corp.-backed Lenskart Solutions Ltd. and Swiggy Ltd.

Over the years, Avendus has expanded into alternative investments and private credit funds managing over $1 billion in assets. Its wealth management business oversees over $9 billion in assets as of October.