Blackstone in talks to buy majority stake in Advent-backed wealth management firm ASK group at around $1bn

US private equity giant Blackstone has entered exclusive negotiations to acquire a majority stake in leading asset and wealth management firm ASK Group which is backed by rival private equity firm Advent International.

“Post the submission of binding bids by various suitors, Blackstone has entered exclusivity for buying a controlling stake of upto 74 per cent in ASK Group,” one of the persons above said. He added that the combined stake sale split between Blackstone & the firm’s founders wasn’t immediately clear.

A second person told Moneycontrol that the proposed transaction is valuing the ASK group at around a $1bn.

According to reports , Advent International had picked up a stake of about 40% in ASK Group in 2016 for $130m giving the entire firm a valuation of $325m back then.

“There are other players including private equity funds in the fray, but as of now Blackstone seems to be in the pole position, and if talks progress smoothly, the transaction is likely to be signed in September, 2021,” elaborated a third person.

A fourth person added that the proposed transaction was in advanced stages. “It’s a good business (referring to the target) and the sector has high growth potential,” he added.

In India, the Blackstone portfolio includes IPO bound Aadhar Housing Finance. The firm’s draft papers are pending approval with Sebi. In late 2020, reports had indicated that the private equity firm was looking to buyout L&T Mutual Fund.

On 13th May 2021, Bloomberg had reported that Advent International was weighing a stake sale in ASK Group.

Source: Money Control

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