Buyout firms CVC Capital Partners, Permira, and EQT are in talks with Asia-Pacific-focused private equity major PAG to buy its controlling stake in Nuvama Wealth Management Ltd (NWML), in a deal potentially worth $1.6 billion, The Economic Times reported on Monday.
Shares of Nuvama, formerly Edelweiss Wealth Management, traded 4% higher at Rs 7,563 on Monday morning.
PAG, backed by Blackstone, holds over 54% stake in the Indian wealth manager. It had invested about $325 million in 2021.
Competing with them is HSBC, Europe’s largest bank by market capitalisation, the report said, in a hotly contested race, as Nuvama’s role as the local trading partner of Jane Street comes under investor scrutiny.
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, the report added.
Nuvama, headquartered in Mumbai, launched its asset management business in 2021 following its split with the Edelweiss group.
The firm currently provides services in wealth, asset management, and capital markets. It also offers advisory services to clients that span from entrepreneurs and promoters to high- and ultra-high-net-worth individuals, and corporate and institutional investors.
Nuvama has a market value of $2.3 billion. It was listed on the Indian bourse in September 2023.
