Global private equity major Blackstone on Monday announced that it has acquired a majority stake in ASK Investment Managers, a nearly three-decade old asset and wealth management company managing over USD 10.6 billion in assets.
The US-based private equity fund has acquired the majority stake from its peer Advent International and other sellers, as per an official statement, which added that the company will expand presence domestically and also overseas after the deal.
However, the financial details of the deal were not disclosed.
ASK is among the first portfolio managers in the country and has operations in other pockets of Asia, Middle East, Africa and Europe, it said, adding that the clientele includes India’s high-net-worth individuals, family offices and institutions.
Blackstone has diversified investments in India pegged at over USD 60 billion, and is among the biggest investors in the commercial real estate space in the country.
As per an August 2021 media report, Blackstone was set to buy over 70 per cent stake in ASK for USD 1 billion and Advent owned 40 per cent in the company.
Capital markets regulator Sebi had in December 2021, approved the deal where Blackstone acquired 71 per cent stake in the company. Earlier it had received a nod from the Competition Commission of India.
“Asset and wealth management in India is a sunrise industry benefiting from secular tailwinds including the financialisation of household savings and an emerging wealthy population seeking personalized financial advice and products,” Amit Dixit, head of Asia for Blackstone Private Equity, said.
He added that ASK is a trusted brand in wealth management built through a track record of consistent performance, customer-centric approach, and best-in-class distributors. It also has an entrepreneurial management team and founder who have been together for more than a decade.
Calling Blackstone as a long-term strategic partner, Sameer Koticha, the founder promoter and chairman of ASK said, “Blackstone’s global reach and deep knowledge of the financial services sector will further strengthen our asset and wealth management businesses and help us grow significantly.”
In the statement, Sunil Rohokale, the chief executive and managing director of ASK said the existing leadership team will continue to drive us forward, in alignment with our core values.
The company plans to expand its geographic reach to over 30 cities in India as well as in select international markets, he added.
Koticha and affiliates will own 16 per cent of the company after the deal, while Rohokale and the employees will own 13 per cent, as per a report.
Advent’s managing director Shweta Jalan said in its five-year investment, ASK has undergone transformational change and has grown significantly.