Blackstone Buys Majority Stake In ASK Investment Managers
Blackstone has acquired the majority stake from Advent and other sellers.
Blackstone Group acquired a majority stake in one of India’s largest asset and wealth managers as the global investment giant looks to better tap the growing number of wealthy in Asia's third-largest economy.
The private equity fund manager bought the stake in ASK Investment Managers from Advent International and other sellers, according to a media statement. The financial details of the transactions were not disclosed.
ASK, primarily catering to high net-worth individuals, has three businesses in India—portfolio management, real estate private equity and wealth advisory. It has clients across Asia, the Middle East, Africa, and Europe, and manages more than $10.6 billion (more than Rs 78,500 crore) in assets as on Dec. 31, 2021, the statement said.
“Asset and wealth management in India is a sunrise industry benefitting from secular tailwinds including the financialization of household savings and an emerging wealthy population seeking personalized financial advice and products," Amit Dixit, head of Asia for Blackstone Private Equity, said in the statement. "ASK is one of the most trusted brands in wealth management, built through a track record of consistent performance, customer-centric approach, and best-in-class distributors."
Sameer Koticha, founder promoter and chairman at ASK Investment Managers, said he was “excited about the investment from Blackstone, as a long-term strategic partner.”
According to Sunil Rohokale, chief executive officer at ASK Investment Managers, the company will leverage Blackstone’s global network as a leading alternate asset manager to scale ASK’s various business lines.
Nomura acted as the exclusive financial adviser to ASK and Advent on the transaction. KPMG and AZB & Partners acted as advisors to ASK. BCG, Ernst & Young, Moelis, Simpson Thacher & Bartlett, and Trilegal acted as advisers to Blackstone.
The number of ultra-high net worth individuals, with wealth of $30 million or more, is expected to rise 63% over the next five years to 11,198 in India, the second fastest growth in the world, according to Knight Frank India's Wealth Report 2021.
"India is expected to be the second fastest growing country in terms of number of ultra-high net worth individuals," it said, adding that the billionaires club in India, too, is expected to increase significantly by 43% to 162 by 2025 from 113 in 2020.
