Private bank and asset manager LGT said on Thursday it has agreed to acquire a controlling stake in Validus Wealth, an Indian wealth manager formerly known as WGC Wealth, with a presence in nine cities across the country.
LGT, owned by Liechtenstein's princely family, will buy the majority stake to gain a foothold in the country’s growing market for high-net-worth private clients.
Although the private bank and asset manager gave no financial terms for the deal, Validus Wealth’s current management will continue to hold the rest of the shares. The deal for Validus Wealth is expected to close within two to three months and will be subject to regulatory approval.
In the coming years, Validus Wealth’s range of services will likely include financing, LGT said.
Validus Wealth chief executive and founder Atul Singh said the acquisition was proof of the growth potential of home-grown wealth management firms. “LGT’s comprehensive capabilities will further propel our ambitious agenda and contribute to our efforts in enhancing robust offerings,” he said.
LGT chief executive HSH Prince Max von und zu Liechtenstein said acquiring Validus Wealth would help the asset manager gain a foothold in India.
Validus Wealth was launched as WGC Wealth, a new venture of Wadhawan Global Capital (WGC), before being renamed. At the time, WGC chairman Kapil Wadhawan said wealth management was a logical step for the group to take because of the increase in the number of wealthy Indians.
Queries to Validus Wealth and WGC did not get a response till the time of publication.