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Economic Times
07-07-2025
- Business
- Economic Times
PE groups Permira, CVC Cap, EQT in fray to buy Nuvama Wealth from PAG
Mumbai: Private equity buyout groups CVC Capital Partners, Permira and EQT are in talks with Asia-Pacific-focused private equity firm PAG to buy its controlling stake in Nuvama Wealth Management Ltd (NWML), formerly Edelweiss Wealth Management, in a buyout that's potentially worth $1.6 billion, said people in the know. ADVERTISEMENT Competing with them is HSBC, Europe's largest bank by market capitalisation, said the people cited, in a hotly contested race, as Nuvama's role as the local trading partner of Jane Street came under investor scrutiny. India's stock market regulator has barred Jane Street from the local securities market. Nuvama's shares plunged 11% in trading, the most in three months, after the interim order - over allegations of market manipulation by Jane Street - became public on Friday. The four contenders listed above have been shortlisted after non-binding bids were submitted late last month. Due diligence is ongoing with an aim to submit binding bids by this month's end, a deadline that most analysts said will be difficult to meet. A Fallback Option Also, Warburg Pincus is said to have made a verbal offer with an indicative value for the business and is being kept as a fallback option. ADVERTISEMENT Domestic fund ChrysCapital is also said to be in the fray. Sources said the potential buyers may be open to a smaller transaction for a lower stake and look to team up with others as co-investors. Consortia are likely to get formed as the cheque size is expected to be large, said the people cited. As promoter, PAG owns 54.78% of Nuvama, which has a market capitalisation of Rs 26,150.87 crore. Any deal involving a change of control will trigger an open offer for 26% of shares held by minority shareholders. At Friday close, PAG's stake is worth Rs 14,383 crore. ADVERTISEMENT With the stock surging 114% since the firm's listing in September 2023, PAG had decided to start a sale process earlier this year and appointed investment banks JP Morgan and Morgan Stanley as advisers. After an initial approach to strategic buyers, a wider circle of potential suitors including buyout funds were tapped. In the past year, the stock has jumped 55.02%.PAG, CVC, EQT, Permira and ChrysCap didn't respond to queries. ADVERTISEMENT HSBC declined to comment. Sources close to the bank said it's not pursuing the acquisition. Nuvama offers wealth management solutions, covering investment advisory, estate planning, asset management services, investment management, lending and broking services for individuals, institutions, senior executives, professional investors and family offices. NWML is the flagship entity of the Nuvama Group that also offers institutional equities, broking, custodian and settlement services and investment banking services to institutional clients. It was previously a wholly owned subsidiary of Edelweiss Financial Services Limited (EFSL), which announced the sale of a part of its stake in the wealth management business to PAG in September quarter of FY21. ADVERTISEMENT Revenue from asset servicesFollowing completion of the demerger process in June 2023, it got listed in September that year. PAG invested about $325 million for a controlling stake in Nuvama in March though 47% of revenue in the March quarter of FY25 came from asset services (custodian, settlement), equities and investment banking, at the profit after tax (PAT) level, 35% came from wealth management. Around 51% of consolidated PAT came from asset services and 18% from equities and investment banking, which includes M&A and capital market advisory for the full Street is among the largest clients of this vertical, sources said. While some analysts estimate 40% of business comes from that single client, this could not be independently verified. As per a company presentation, the vertical handled $14.7 billion of institutional assets in FY25, a breakout year when the business saw its revenues jump 85% from the year Sebi has not named Nuvama in its order, it got caught in regulatory crossfire as it had earlier responded to the NSE's investigation into Jane Street's trades, which the exchange closed in May. Strong show in FY25 Overall, Nuvama reported a strong performance in FY25 with a 58% YoY increase in profit after tax and a return on equity of 31%. The implementation of regulatory measures for strengthening the index derivatives framework in November 2024 and the moderation in market trends saw Nuvama's revenue from the institutional equities and investment banking segments declining by 27% in March quarter of FY25 from the best-ever performance in Q2 of the same fiscal to ICRA, the franchise's strengths are partially offset by exposure to the inherent volatility in the capital markets besides regulatory uncertainties and associated franchise and reputational risks.'The Jane Street episode will be a one-time hit but not have structural impact,' said one of the executives cited. 'However, valuation may be likely to get impacted if the matter drags on.'Most investors are keen on Nuvama because of its wealth platform. The sector in India is fragmented across different types of players. Currently, wealth under professional management in India stands at around 15%, as compared to ~75% in matured markets. Indian wealth managers have $130-160 billion of assets under management (AUM) of India's $1-1.2 trillion wealth management market.
Time of India
07-07-2025
- Business
- Time of India
PE groups Permira, CVC Cap, EQT in fray to buy Nuvama Wealth from PAG
Mumbai: Private equity buyout groups CVC Capital Partners , Permira and EQT are in talks with Asia-Pacific-focused private equity firm PAG to buy its controlling stake in Nuvama Wealth Management Ltd (NWML), formerly Edelweiss Wealth Management, in a buyout that's potentially worth $1.6 billion, said people in the know. Competing with them is HSBC , Europe's largest bank by market capitalisation, said the people cited, in a hotly contested race, as Nuvama's role as the local trading partner of Jane Street came under investor scrutiny. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Most Beautiful Women In The World India's stock market regulator has barred Jane Street from the local securities market. Nuvama's shares plunged 11% in trading, the most in three months, after the interim order - over allegations of market manipulation by Jane Street - became public on Friday. The four contenders listed above have been shortlisted after non-binding bids were submitted late last month. Due diligence is ongoing with an aim to submit binding bids by this month's end, a deadline that most analysts said will be difficult to meet. Agencies A Fallback Option Live Events Also, Warburg Pincus is said to have made a verbal offer with an indicative value for the business and is being kept as a fallback option. Domestic fund ChrysCapital is also said to be in the fray. Sources said the potential buyers may be open to a smaller transaction for a lower stake and look to team up with others as co-investors. Consortia are likely to get formed as the cheque size is expected to be large, said the people cited. As promoter, PAG owns 54.78% of Nuvama, which has a market capitalisation of Rs 26,150.87 crore. Any deal involving a change of control will trigger an open offer for 26% of shares held by minority shareholders. At Friday close, PAG's stake is worth Rs 14,383 crore. With the stock surging 114% since the firm's listing in September 2023, PAG had decided to start a sale process earlier this year and appointed investment banks JP Morgan and Morgan Stanley as advisers. After an initial approach to strategic buyers, a wider circle of potential suitors including buyout funds were tapped. In the past year, the stock has jumped 55.02%. PAG, CVC, EQT, Permira and ChrysCap didn't respond to queries. HSBC declined to comment. Sources close to the bank said it's not pursuing the acquisition. Nuvama offers wealth management solutions, covering investment advisory, estate planning, asset management services, investment management, lending and broking services for individuals, institutions, senior executives, professional investors and family offices. NWML is the flagship entity of the Nuvama Group that also offers institutional equities, broking, custodian and settlement services and investment banking services to institutional clients. It was previously a wholly owned subsidiary of Edelweiss Financial Services Limited (EFSL), which announced the sale of a part of its stake in the wealth management business to PAG in September quarter of FY21. Revenue from asset services Following completion of the demerger process in June 2023, it got listed in September that year. PAG invested about $325 million for a controlling stake in Nuvama in March 2021. Even though 47% of revenue in the March quarter of FY25 came from asset services (custodian, settlement), equities and investment banking, at the profit after tax (PAT) level, 35% came from wealth management. Around 51% of consolidated PAT came from asset services and 18% from equities and investment banking, which includes M&A and capital market advisory for the full FY25. Jane Street is among the largest clients of this vertical, sources said. While some analysts estimate 40% of business comes from that single client, this could not be independently verified. As per a company presentation, the vertical handled $14.7 billion of institutional assets in FY25, a breakout year when the business saw its revenues jump 85% from the year before. Though Sebi has not named Nuvama in its order, it got caught in regulatory crossfire as it had earlier responded to the NSE's investigation into Jane Street's trades, which the exchange closed in May. Strong show in FY25 Overall, Nuvama reported a strong performance in FY25 with a 58% YoY increase in profit after tax and a return on equity of 31%. The implementation of regulatory measures for strengthening the index derivatives framework in November 2024 and the moderation in market trends saw Nuvama's revenue from the institutional equities and investment banking segments declining by 27% in March quarter of FY25 from the best-ever performance in Q2 of the same fiscal year. According to ICRA, the franchise's strengths are partially offset by exposure to the inherent volatility in the capital markets besides regulatory uncertainties and associated franchise and reputational risks. 'The Jane Street episode will be a one-time hit but not have structural impact,' said one of the executives cited. 'However, valuation may be likely to get impacted if the matter drags on.' Most investors are keen on Nuvama because of its wealth platform. The sector in India is fragmented across different types of players. Currently, wealth under professional management in India stands at around 15%, as compared to ~75% in matured markets. Indian wealth managers have $130-160 billion of assets under management (AUM) of India's $1-1.2 trillion wealth management market.
Time of India
07-07-2025
- Business
- Time of India
Permira, CVC Cap, EQT in Talks to buy Nuvama Wealth
Live Events Private equity buyout groups CVC Capital Partners Permira and EQT are in talks with Asia-Pacific-focused private equity firm PAG to buy its controlling stake in Nuvama Wealth Management Ltd (NWML), formerly Edelweiss Wealth Management, in a buyout that's potentially worth $1.6 billion, said people in the with them is HSBC, Europe's largest bank by market capitalisation, said the people cited, in a hotly contested race, as Nuvama's role as the local trading partner of Jane Street came under investor stock market regulator has barred Jane Street from the local securities market. Nuvama's shares plunged 11% in trading, the most in three months, after the interim order — over allegations of market manipulation by Jane Street — became public on four contenders listed above have been shortlisted after non-binding bids were submitted late last month. Due diligence is ongoing with an aim to submit binding bids by this month's end, a deadline that most analysts said will be difficult to Warburg Pincus is said to have made a verbal offer with an indicative value for the business and is being kept as a fallback fund ChrysCapital is also said to be in the fray. Sources said the potential buyers may be open to a smaller transaction for a lower stake and look to team up with others as co-investors. Consortia are likely to get formed as the cheque size is expected to be large, said the people promoter, PAG owns 54.78% of Nuvama, which has a market capitalisation of Rs 26,150.87 crore. Any deal involving a change of control will trigger an open offer for 26% of shares held by minority shareholders. At Friday close, PAG's stake is worth Rs 14,383 the stock surging 114% since the firm's listing in September 2023, PAG had decided to start a sale process earlier this year and appointed investment banks JP Morgan and Morgan Stanley as advisers. After an initial approach to strategic buyers, a wider circle of potential suitors including buyout funds were tapped. In the past year, the stock has jumped 55.02%.PAG, CVC, EQT, Permira and ChrysCap didn't respond to declined to comment. Sources close to the bank said it's not pursuing the offers wealth management solutions, covering investment advisory, estate planning, asset management services, investment management, lending and broking services for individuals, institutions, senior executives, professional investors and family is the flagship entity of the Nuvama Group that also offers institutional equities, broking, custodian and settlement services and investment banking services to institutional clients. It was previously a wholly owned subsidiary of Edelweiss Financial Services Limited (EFSL), which announced the sale of a part of its stake in the wealth management business to PAG in September quarter of completion of the demerger process in June 2023, it got listed in September that year. PAG invested about $325 million for a controlling stake in Nuvama in March though 47% of revenue in the March quarter of FY25 came from asset services (custodian, settlement), equities and investment banking, at the profit after tax (PAT) level, 35% came from wealth management. Around 51% of consolidated PAT came from asset services and 18% from equities and investment banking, which includes M&A and capital market advisory for the full Street is among the largest clients of this vertical, sources said. While some analysts estimate 40% of business comes from that single client, this could not be independently verified. As per a company presentation, the vertical handled $14.7 billion of institutional assets in FY25, a breakout year when the business saw its revenues jump 85% from the year Sebi has not named Nuvama in its order, it got caught in regulatory crossfire as it had earlier responded to the NSE's investigation into Jane Street's trades, which the exchange closed in Nuvama reported a strong performance in FY25 with a 58% YoY increase in profit after tax and a return on equity of 31%. The implementation of regulatory measures for strengthening the index derivatives framework in November 2024 and the moderation in market trends saw Nuvama's revenue from the institutional equities and investment banking segments declining by 27% in March quarter of FY25 from the best-ever performance in Q2 of the same fiscal year.
Business Times
18-06-2025
- Business
- Business Times
BlackRock launches absolute return hedge fund for retail investors in Singapore and Hong Kong
[SINGAPORE] BlackRock has launched an Asia-Pacific-focused hedge fund for retail investors in Singapore and Hong Kong, the world's largest asset manager with US$11.6 trillion in assets under management announced on Wednesday (Jun 18). The fund, titled the Systematic Asia Pacific Equity Absolute Return Fund, employs a market-neutral strategy that is designed to be resilient to volatility in the broad equity markets by taking long and short positions in select stocks. Put simply, 'the strategy aims to give you non-market-driven returns', said Dennis Quah, head of Singapore wealth at BlackRock, in an interview with The Business Times. 'We pick stocks that we expect to do well, taking a long position on those, and take a short position (on) stocks that we expect not to do well. And we do it with a systematic investing approach,' he explained. A short position is the monetising of a stock-price or asset-value depreciation, he added. 'If you expect something to go up in value, you take a long position. If you expect something to go down in value, you take a short position.' The fund, which was open to institutional investors in Singapore in 2017, had US$727 million in net assets as at May 31, 2025, and more than 2,800 holdings. In 2024, it delivered a 23.7 per cent return, according to the fund fact sheet. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'In Singapore, the fund is available in UOB personal financial services, Citibank Singapore and other platforms,' a spokesperson said. Vital for investors to understand the approach Part of the challenge in launching a hedge fund for retail investors is ensuring that they understand the investment strategy, and managing the negative impressions people have of hedge funds. 'To those who are not familiar with hedge funds, some words that typically get associated with them, are risky, heavily leveraged, dangerous, opaque, black box… Hedge funds as a category of investment product generally have had a negative connotation to it emanating from past crisis events such as the Asian financial crisis (and) the global financial crisis,' Quah admitted. 'But if you actually break down the word hedge fund – hedging means, actually, to reduce risk, not necessarily to increase it. So a hedge fund is actually, by construct, supposed to hedge away the risk that you don't want, to isolate the risk that you want,' he said. Given the right framework and in the right hands, hedge funds can add value to a portfolio, he added. However, he warns that the fund should not be consumed on its own, but be commingled with a larger portfolio. In BlackRock chairperson Larry Fink's 2025 annual letter to investors, he said that the future standard portfolio will no longer be 60/40, where 60 per cent of assets are allocated to equities and 40 per cent to bonds. Instead, he noted, the proportion would be 50/30/20 – with 50 per cent and 30 per cent allocated to stocks and bonds, respectively, and 20 per cent to alternatives. Still, the fund is not without its risks, conceded Quah. It might not deliver returns if the portfolio managers get the investment strategy wrong by consistently going long on the companies that lose value and going short on the companies that rise in value. Also, if the dispersion between good and bad-performing companies narrows dramatically where everything goes up or down at the same time, there will be little or no opportunity to make money or deliver absolute positive returns. 'So that's an extreme situation that we don't expect to happen for protracted periods of time. It may happen sporadically, like what we saw with the Magnificent Seven a few months ago, but, even then, you saw that massive mean reversal later on,' he said. The Magnificent Seven refers to the top seven mega-cap companies in the S&P 500, and includes Alphabet, Amazon, Apple and Meta. The fund has also put in place risk-mitigation measures, he added. 'We have a very diversified approach. We have 2800 securities in this portfolio, so it runs systematically. No one human being can manage that number of stocks in one portfolio on a purely fundamental basis. So we combine human expertise with technology to help us implement the investment strategy.' BlackRock's systematic platform brings research and measurement techniques to the investment process with the use of data and technology. This involves using machine-learning systems to weight investment signals that indicate how companies might perform – from tweets by chief executive officers, to public sentiment about a company that might indicate fundamental data such as sales and revenue numbers, for instance.
Int'l Business Times
06-06-2025
- Business
- Int'l Business Times
JPMorgan Bets Big on Asia's Booming Credit Market With $50 Billion Expansion
JPMorgan Chase is accelerating its efforts in Asia's rapidly expanding private credit market, setting its sights on the growing demand for non-traditional financing across the region. With tighter bank regulations and an appetite for flexible capital solutions, the global banking powerhouse is building out its private credit team and focusing on direct lending opportunities. This strategic shift underscores JPMorgan's ambition to capitalise on Asia's surging economic influence and evolving credit needs. Why Asia Matters For JPMorgan JPMorgan Chase's move into Asia's private credit space is a calculated strategy rooted in the region's robust economic trajectory and rising appetite for alternative lending. Asia is expected to drive over 50% of global GDP growth, yet its private credit market remains underdeveloped. Annual private credit deals in the region amount to around $200 billion (£147.27 billion), dwarfed by the $1.5 trillion (£1.10 trillion) public debt market. To tap into this potential, JPMorgan announced in February 2025 an additional $50 billion (£36.82 billion) allocation towards its direct lending efforts. This investment aims to enhance its market share and address the diverse financing demands of Asian enterprises. 'Asia is driving over 50% of the world GDP growth, and we have some of the biggest economies in the region,' said Serene Chen, JPMorgan's Asia Pacific head of credit, currency, and emerging market sales, according to Reuters. The Current State Of Asia's Private Credit Industry Asia's private credit sector is on an upward trajectory, propelled by bank retrenchment and increasing corporate demand for lending alternatives. As of September 2023, the region's assets under management in private credit stood at approximately US$124 billion (£91.31 billion), accounting for just 6% of the global total—despite the region contributing roughly half of global GDP. In 2024, Asia-Pacific-focused private credit funds raised US$5.89 billion (£4.34 billion) across 33 funds, up slightly from US$5.48 billion (£4.04 billion) the year prior, according to S&P Global. Countries like India and South Korea have become hotbeds for activity, as regulatory constraints on traditional banking create space for private lenders. Additionally, banks' retreat from sectors such as real estate has opened the door for credit firms to provide more agile financial options. What's Happening Outside Asia? JPMorgan's private credit performance beyond Asia has remained strong, particularly in North America and Europe. Since 2021, the firm has executed over $10 billion (£7.36 billion) in more than 100 private credit deals. In early 2025, it committed another $50 billion (£36.82 billion) to its direct lending arm, with nearly $15 billion (£11.05 billion) from co-investors. In Europe, JPMorgan has ramped up its capacity to issue and retain leveraged loans, highlighted by a $1.4 billion (£1.03 billion) facility backing Silver Lake's $12.5 billion (£9.20 billion) acquisition of Qualtrics. This marked the region's first jumbo public-to-private underwrite since early 2022. The bank also forecasts that more than $30 billion (£22.09 billion) in private credit will trade hands on the secondary market in 2025, underscoring rising investor demand for liquidity and JPMorgan's active role in shaping that market. Private Credit's Strategic Role In Turbulent Markets With global markets buffeted by renewed US-China trade tensions and mounting tariff unpredictability, JPMorgan's expansion into private credit offers a strategic buffer against volatility. The bank has identified inflation and tariffs as principal disruptors of the 2025 financial outlook. JPMorgan's ongoing efforts to boost transparency in private lending—facilitating billions in private trades—further reinforce its commitment to market innovation. By addressing the liquidity challenges inherent in opaque credit markets, the firm is carving a path toward greater resilience and adaptability in modern finance. Originally published on IBTimes UK
