Pacific Alliance buys 51% stake in Edelweiss Wealth

Pacific Alliance Group (PAG), one of the world's largest Asia-focused investment groups, has completed an investment of about Rs 2,400 crore for a 51% stake in Wealth Management. This investment is among the major FDI investments in the growing Indian wealth management industry.

“With all regulatory approvals the investment has come into the Edelweiss Group,” said a senior executive familiar with the matter. This investment will help in scaling up the Wealth franchisee and will also aid in funding other growing businesses including Alternatives, Asset Reconstruction, Life & General insurance, mutual funds & retail lending.

Last year in August, the group signed an agreement with PAG, which was supposed to buy a controlling stake in the group. It is PAG’s first large inorganic deal in India and they plan to invest USD 1 billion in India in the next 2 to 3 years. ET was first to report about the deal. It was also announced that the company plans to demerge and list the wealth business, unlocking value for shareholders.

PAG will now own 51% stake in Edelweiss Wealth Management. Edelweiss group will end up owning about 40 percent stake. Operationally, no change is expected and the current management team will continue to lead the business.