ASK Asset & Wealth Management, backed by Blackstone, is actively seeking acquisitions in both the wealth management and asset management sectors to enhance its assets under management and client base, according to a senior official.
In the wealth management sector, the company is targeting potential acquisitions with assets ranging from ₹40,000-80,000 crore, while in the mutual fund segment, it is eyeing firms with assets exceeding ₹25,000-30,000 crore under management. CEO and MD of ASK Private Wealth, Rajesh Saluja, stated that they are open to considering larger mutual funds as well.
Saluja mentioned that while the firm has evaluated acquisition opportunities in the past, valuations in the wealth management sector were deemed too high. However, with the recent market corrections, they are keen to explore potential deals.
The company is also venturing into the mutual fund industry and has been evaluating acquisition targets in this space. Saluja emphasized that any acquisition should be priced at around 18-20 times earnings to ensure value for money. High valuations, ranging from 40-60 times earnings, have been a challenge due to the market rally in recent years.
The primary objective of an acquisition would be to expand the client base and relationship manager team, which is crucial for sustained growth. Saluja highlighted the benefits of acquiring a firm with an existing client portfolio and relationship managers, enabling them to hit the ground running from day one.
The wealth management sector in India has witnessed consolidation recently, with players like 360 ONE Wealth and Asset Management acquiring firms like Batlivala & Karani Securities. The industry is poised for significant growth, with projections indicating an increase in AUM to $2.3 trillion by FY29 from $1.1 trillion in FY24.
Overall, the company is focused on strategic acquisitions to strengthen its market position and drive growth in both the wealth management and asset management segments.
