India-based Credent Asset Management Services has concluded the purchase of a 49% stake in Essel Finance Advisors and Managers (EFAM) for an undisclosed sum.
Launched by Essel Group in 2012, EFAM is involved in the management of alternative investment funds.
The firm currently handles two category ll alternative investment funds (CAT II AIF) with more than INR2bn ($24m) in assets.
The deal is part of 100% acquisition of EFAM after Securities and Exchange Board of India (SEBI) approves the firm’s ownership change.
It is expected to enhance Credent Asset Management’s footprint in India’s alternative investment sector.
Credent Group managing director Aditya Vikram Kanoria said: “Our focus is to fast track our expansion plans and this acquisition is a part of the larger business vision and strategy.
“We are in the process of launching three new Alternative Investment Funds (AIF) to raise over INR5bn.
“EFAM has built a robust investment management platform with a strong ecosystem and client base of UHNIs, Corporates and Family offices and we intend to leverage this platform to grown close our asset management business.”
Credent expects to roll out three new alternative investment funds soon for its clients.
Kanoria added: “With India’s GDP growing at a rapid pace, we believe this is the ideal time for us to launch these funds to give another opportunity to our local & global investors to invest in India’s growth story.
“This would also enable us to grow our AUM to over INR10bn within the next 12 months.”