said these investment partnerships are part of the strategic growth plan, whereby the group will operate three separate businesses — credit, investment advisory, and insurance. The three will be distinct entities with “their own set of investors, ring-fenced capital base, and an independent board”, Edelweiss said in a release.
The credit and life insurance businesses of Edelweiss, too, have got investors on board. Canada’s Caisse de dépôt et placement du Québec (CDPQ) has made a strategic investment of Rs 1,800 crore in the credit business, while Japan’s Tokio Marine has picked up a 49 per cent stake in the life insurance business.
Wealth management and advisory are being looked at as business areas with high growth potential.
In September, IIFL Wealth Management became the country’s first major private wealth manager to go for a listing, following its demerger from parent IIFL Finance. It is currently valued at Rs 11,000 crore.
“Financial services in India has gained traction in recent years, thanks to a young workforce. We look forward to working with the Sanaka team,” said Rashesh Shah, chairman and CEO of Edelweiss group.
“We are confident EGIA will capture growth opportunities through product expansion and entry into new regions,” said Shankar Narayanan, founder of Sanaka Group.