CVC Capital Partners, EQT, and Permira have entered advanced talks to acquire Asia-Pacific private equity firm PAG’s majority stake in Nuvama Wealth Management, in a potential deal valued at up to $1.6bn.

The sale process, launched earlier this year, comes as PAG seeks to monetise its 54.78% holding in Nuvama, formerly Edelweiss Wealth Management. HSBC was also a contender but has since withdrawn, according to sources cited by The Economic Times. PAG originally acquired control of the company in March 2021 through a $325m investment.

Binding offers are expected later this month, although deal timelines may shift. Warburg Pincus has reportedly submitted a verbal proposal and remains an alternative option. ChrysCapital is also involved and may pursue a co-investment structure given the potential deal size.

Nuvama, listed since September 2023, has delivered strong financial performance, with profit after tax up 58% year-on-year in FY25 and return on equity reaching 31%. Its wealth division generated 35% of FY25 profits, while 51% came from asset services. Institutional clients, including major trading partner Jane Street, contributed significant revenue, although recent regulatory scrutiny surrounding Jane Street’s activity has weighed on sentiment.

Despite market volatility, Nuvama’s stock has surged 114% since its listing. A change-of-control transaction would trigger a mandatory open offer for 26% of the company’s shares held by minority shareholders.

The potential acquisition reflects sustained investor interest in India’s wealth management sector. With only 15% of domestic wealth professionally managed, the country offers considerable growth potential, especially when compared to the ~75% seen in more mature markets. Nuvama manages between $130bn and $160bn in assets across advisory, broking, estate planning, and institutional equities services.

JP Morgan and Morgan Stanley are advising PAG on the transaction. CVC, EQT, Permira, and ChrysCapital declined to comment.

Source: Economic Times

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