India’s HDFC has agreed to divest a 10% holding in its private equity arm to a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) for around $24.06m (INR1.84bn), reported PTI.

Founded in 2016, HDFC Capital is the investment manager for HDFC Capital Affordable Real Estate Funds I, II and III.

The unit manages an approximately $3bn funding platform focused on the development of affordable housing.

The funds managed by HDFC Capital are said to offer long-term, flexible funding across the life cycle of affordable and mid-income housing projects, including early-stage funding, according to the report.

ADIA is also the primary investor in the alternative investment funds managed by HDFC Capital.

HDFC chairman Deepak Parekh was quoted by The Times of India as saying: Investment by ADIA will enable HDFC Capital to leverage ADIA’s global expertise and experience to further propel HDFC Capital towards becoming a leading investment platform for global and local investors.”

In September last year, British investment manager Abrdn sold a 5% stake in HDFC AMC.

Other developments in India’s private banking space

Earlier this month, US-based private investment firm Bain Capital signed a deal to buy a 24.98% equity stake in India-based IIFL Wealth Management.

Last month, Edelweiss Group revealed plans to list the shares of its wealth management division in stock exchanges through a demerger.

The same month, the Competition Commission of India approved HSBC AMC’s proposed takeover of L&T Investment Management.

In February, Indian financial service firm Cosmea Financial launched its wealth management business.