American PE major Advent picks up 41% in Ask Group for USD125 m

Leading wealth management player Ask Group has sold 41 per cent stake to Boston-based private equity major Advent International for USD 125 million.

Founders and other promoters, who include the top management, will retain the remaining 59 per cent in the city-based company, which is the largest in private wealth management firm in the country with an asset under management of close to Rs 30,000 crore, Ask Group managing director Sunil Rohokale said.

Though he refused to reveal the value of the deal, sources said, Advent is said to have paid USD 125 million for 41 per cent.

"Out of our total AUM of around Rs 30,000 crore, only USD 350 million are foreign capital. So this capital infusion will not only help widen our portfolio, but will also help us get foreign clients," Rohokale told PTI today.

Stating that Advent will help in building capacities to raise foregin capital, he said, "Partnership will focus on accelerating Ask Group's growth by strengthening its team, launching new products and expanding internationally." "With the help of the Advent team, we plan to build an international franchise for investment opportunities focusing on institutional investors and family offices," he added.

Founded in 1983, Ask Group is the country's largest equity PMS provider, a leading real estate investment manager and one of the top wealth managers. The group also has a PE fund management business and has offices in Singapore along with a capital market licence, and in West Asia, he said.

When asked about board representation of Advent in Ask, he said they will get two board positions post the deal.

Rohokale said of the Rs 30,000 crore AUM, Rs 18,000 crore are in wealth management portfolio, Rs 9,000 crore in equity PMS, Rs 5,000 crore in realty PE and Rs 5,000 crore in pure equities.

The transaction is the first investment that Advent has made in the country from its new USD13 billion global PE fund, and its third in the country in the past two years following deals in Crompton Greaves Consumer Electricals and Quest Global Services.

Advent, which has been investing here since 2007, has opened an office in Mumbai in 2009 and its other investments here include Care Hospitals and Computer Age.

"Advent with its deep sector expertise and global resources, can bring significant value to help us increase productivity, broaden our range of services and expand our international presence, which will help us take our businesses to the next level of growth," said Asit Koticha, chairman and founder of Ask Group.

Advent India head Shweta Jalan said Advent, founded in 1984, is one of the largest and most experienced global private equity investors and has invested in over 315 private equity transactions in 40 countries. As of September 2016, it had USD 42 billion in AUM.