Private equity giants Permira, CVC Capital Partners, and EQT are among the leading contenders to acquire a controlling stake in Nuvama Wealth Management from Asia-focused firm PAG, in a potential $1.6bn deal, according to a report by the Economic Times.
PAG, which holds a 54.78% stake in the former Edelweiss Wealth Management business, has launched a sale process after the stock surged over 110% since its September 2023 listing. Despite recent market volatility tied to a regulatory action involving major client Jane Street, Nuvama posted a 58% YoY profit rise in FY25 and a 31% return on equity.
The PE firms have reportedly advanced to due diligence after submitting non-binding offers last month, and binding bids are expected later in July. HSBC was also reported to be in the fray but is no longer pursuing the deal. Warburg Pincus and ChrysCapital are also engaged, with the latter potentially joining a consortium given the cheque size.
While regulatory risks and client concentration remain key concerns, the deal is seen as a strategic opportunity to gain exposure to India’s fast-growing and under-penetrated wealth management market, where just 15% of wealth is professionally managed compared to ~75% in developed markets.
PAG originally acquired control of Nuvama in 2021 for $325m. The sale, if completed, could also trigger a mandatory open offer for 26% of minority shareholder equity under Indian takeover rules.
