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IIFL Wealth to buy L&T Finance’s wealth management business

L&T Finance entered wealth management in 2012 by hiring the team of the Indian arm of Swiss private bank EFG.

ET Bureau|
Aug 29, 2019, 07.52 AM IST
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IIFL Wealth has been growing by acquiring smaller rivals.
Mumbai: A unit of IIFL Wealth Management has agreed to acquire L&T Finance Holdings’ wealth management business for Rs 230 crore, the companies said on Wednesday.

IIFL Wealth Finance’s deal for L&T Capital Markets, which provides wealth management services for individual and institutional clients, excludes the cash and cash equivalents held by the L&T Finance unit.

IIFL Wealth, in which General Atlantic holds 21.8 per cent, handled assets worth Rs 169,000 crore as on March 31. The IIFL group company employs close to 1,000 people, who service more than 13,000 families. L&T Wealth has over 100 executives and manages assets worth Rs 25,700 crore.

ET on August 7 was the first to report that IIFL Wealth was the frontrunner to buy out L&T Wealth.

L&T Finance entered wealth management in 2012 by hiring the team of the Indian arm of Swiss private bank EFG.

As the regulator has clamped down on commissions for mutual funds and portfolio management services, it has become tough for wealth managers without scale to survive.

IIFL Wealth has been growing by acquiring smaller rivals. In 2018, it announced the acquisition of Chennai-based Wealth Advisors India to strengthen its presence in Chennai, Bengaluru, and Coimbatore. Before that, it had bought Bengaluru-based Altiore Advisors.

Recently, WGC Wealth, the erstwhile wealth management arm of Wadhawan Global Capital, the holding company of finance company DHFL, was taken over by LGT, a private banking and asset management group owned by the princely family of Liechtenstein.

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