UBS in talks on Indian minority-owned wealth joint venture, say sources

360 One Wam

27/09/2024 10:47

By Siddhi Nayak and Sarita Chaganti Singh
       MUMBAI/NEW DELHI, Sept 27 (Reuters) - UBS  UBSG.S  is in
talks to form an Indian wealth management joint venture with
Mumbai-based 360 One WAM  ONEW.NS , two sources with direct
knowledge of the matter told Reuters.
    The joint venture would help the Swiss bank to expand its
Indian wealth business to 'high net worth individuals' from its
existing focus on 'ultra high net worth individuals', they said.
    India's wealth management sector is being driven by rapid
economic growth and a domestic market rally. It was worth $429.1
billion in 2023 and is forecast to grow at a compound annual
rate of 4.6% between 2025 and 2029, TechSci Research said.
    Globally, UBS had $4 trillion worth of invested assets at
the end of June, while 360 One, previously known as IIFL Wealth
Management, has 5.21 trillion rupees ($62.28 billion).
    UBS declined to comment, while 360 One said it did not
comment on speculation.
    UBS has held preliminary talks with 360 One and plans to
hold a stake of up to 26% in the venture, with a deal expected
in the next few months, said the sources, who declined to be
named as they were not authorised to talk to the media.
    While Switzerland's biggest bank has been exploring the
possibility of setting up a wealth joint venture in India and
would be open to owning a majority stake, no decision had been
taken about a partner, another source said.
    The bank's Indian presence has been bolstered by the
integration of the local operations of Credit Suisse, which it
last year in a Swiss government engineered rescue.
    If the India joint venture plan materializes, it would be
the second country in the Asia Pacific region where UBS would
enter into an equity partnership with a local player.
    UBS signed a deal with Sumitomo Mitsui Trust in Japan in
2019 to create a venture majority-owned by the Swiss bank that
expanded the services both firms can offer their wealthy and
ultra-wealthy customers.
($1 = 83.5120 Indian rupees) 

 (Reporting by Sarita Chaganti Singh in New Delhi and Siddhi
Nayak in Mumbai; Editing by Alexander Smith)
 ((Siddhi.Nayak@thomsonreuters.com; +91 22 6921 7848; Reuters
Messaging: X: https://twitter.com/siddhiVnayak))