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Page 1: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 1 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

Analyst – Monali Doshi February 2011 [email protected]

EXECUTIVE SUMMARY

The total Assets under management for wealth sector (Mutual Fund, Fixed

Income, and Equity) in India is expected to grow at around 33% YoY from

USD 220 billion in 2010 to over USD 500 billion by 2013.

India’s individual wealth is predicated that it will almost double from the

existing USD 1.59 trillion to USD 3.18 trillion in the next three years that

will probably grow at 26% compounded annual rate, whereas the market

size for individual wealth management in China was USD 350 billion and

is expected to reach USD 700 billion by 2014.

The individual HNI wealth across the globe is estimated to grow from USD

39 trillion in 2010 to USD 48.5 trillion by 2013 at a growth rate of 5.6%,

which indicates that the Individual wealth in India which grows at 26%

compounded annual rate is expected to grow at more than four times the

world rate.

Due to overall macro-economic growth and strong recovery in stock

market, India’s high net worth individual population grew to over 130,800

in 2010 and is estimated that it will increase to over 174,095 by 2013.

The fact that affluent wealth is growing at a rate of 17.6% compounded

annually is attracting both foreign wealth managers to set up business and

domestic banks to set up wealth management businesses.

The individual HNI wealth across the globe is estimated to grow from USD

39 trillion in 2010 to USD 48.5 trillion by 2013 at a growth rate of 5.6%,

which indicates that the Individual wealth in India which grows at 26%

compounded annual rate is expected to grow at more than four times the

world rate.

HNWI Wealth (USD trillion)

Source: CapGemini

Distribution of HNWI Investments

Source: CapGemini

The wealth management market in

India will have a target size of 42

million households by 2012, as

against 13 million in 2007.

Over the next four-five years, the

revenue from wealth management

services is expected to contribute to

over one third of full-service financial

institutions.

HNI Wealth across the Globe (USD trillion)

0

20

40

60

2008 2009 2010 2011E 2012E 2013EAfrica Middle East Latin America Asia-Pacific Europe North America

27 29

25 26

22 2312 107 77 5

0%

50%

100%

2009 2010Luxury Collectibles Art Collections

Jewelry, Gems & Watches Other Collectibles

Sports Investments Miscellaneous

3942.17

45.3348.5

0

10

20

30

40

50

60

2010 2011E 2012E 2013E

Page 2: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 2 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

CONTENTS

EXECUTIVE SUMMARY 1

WEALTH MARKET 3

SEGMENTATION OF INDIAN WEALTH MARKET 6

WEALTH MANAGEMENT VALUE CHAIN 7

GROWTH OF ASSET UNDER WEALTH MANAGEMENT (AUWM) IN INDIA 8

REGULATION 9

KEY PLAYERS 11

RECENT DEALS 26

ABOUT RESEARCH 27

Page 3: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 3 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

WEALTH MARKET

Number of Billionaires around the World Number of Billionaires in Asia

Source: Forbes Rich List

Mukesh Ambani, Lakshmi Mittal, Azim Premji, Anil Ambani, Shashi & Ravi Ruia, Savitri Jindal, Kushal Pal Singh,

Kumar Birla, Sunil Mittal and Anil Agarwal these are the top ten billionaires of India.

Growth of Individual Wealth in India (USD trillion)

The individual wealth in India will almost double in

the next three years. It is estimated to grow from

present USD 1.59 trillion to USD 3.18 trillion by 2012-

2013.

64

49

25 2218

11 10 10 9 7 5 4 4 4 3 2 1 10

10

20

30

40

50

60

70

Ch

ina

Ind

ia

Ho

ng

Ko

ng

Jap

an

Taiw

an

Sou

th K

ore

a

Sau

di A

rab

ia

Isra

el

Mal

aysi

a

Ind

on

esia

Kaz

akh

stan

Leb

ano

n

Sin

gap

ore

U.A

.E

Thai

lan

d

Ph

ilip

pin

es

Ku

wai

t

Pak

ista

n

1.59

2

2.52

3.18

0

0.5

1

1.5

2

2.5

3

3.5

2009-2010 2010-2011E 2011-2012E 2012-2013E

403

64 62 53 49 29 28 25 24 22

0

50

100

150

200

250

300

350

400

450

Un

ited

Sta

tes

Ch

ina

Ru

ssia

Ger

man

y

Ind

ia

Un

ited

Kin

gdo

m

Turk

ey

Ho

ng

Ko

ng

Can

ada

Jap

an

Page 4: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 4 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

Asset-wise breakup of Individual Wealth in India

Source: KPW

We can see a shift towards the equity based asset classes which are expected to form 42.9% of individual wealth by 2012-2013 as against 33.9% in 2009-2010.

The investment in debt is expected to increase by 20 % year-on-year in volume terms, its overall proportion is likely to reduce from the present 65.8% of individual wealth in India to 56.1% by 2012-2013. Individuals in India are under invested in alternative assets with just 0.3% of India’s wealth presently in alternative assets as compared to 7% to the globe.

Investment in direct equity of individual wealth in India

amounts to over USD 494,140 million. Investment in fixed deposits & bonds of individual wealth

in India amounts to over USD 481,806 million. Investment in insurance of individual wealth in India

amounts to over USD 227,423 million. Investment in savings bank deposits of individual wealth

in India amounts to over USD 146,768 million. Investment in small savings of individual wealth in India

amounts to over USD 112,861 million. Investment in provident fund of individual wealth in

India amounts to over USD 61,209 million. Investment in mutual funds of individual wealth in India

amounts to over USD 60,425 million. Investment in alternative assets of individual wealth in

India amounts to USD 4,038 million.

Key Asset-wise breakup of Individual wealth in India (%)

Source: KPW

31.10%

30.30%

14%

9%

7%

4% 4% 0.3%

Direct Equity Fixed Deposits & Bonds Insurance

Savings Bank Deposits Small Savings Provident Fund

Mutual Funds Alternative Assets

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20

09

-2

01

0

20

10

-2

01

1E

20

11

-2

01

2E

20

12

-2

01

3E

Alternative Assets

Debt

Equities

Page 5: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 5 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

Breakdown of HNWI Financial Assets (%)

Source: CapGemini

Wealth management industry currently registers a 30 % plus growth rate. The number of people with more than USD 1 million of financial assets is estimated to double from 84,000 in 2008 to over 166,793 by 2013. By 2012, the country’s wealth management market is expected to be USD 1 trillion, with approximately 42 million households by 2012, as against USD 13 million in 2007.

As the economic conditions are improving, the

profile of HNWI portfolios is likely to shift upward. HNWI’s investment in equities is expected to rise from 29% in 2009 to over 35% in 2011.

It is also expected that fixed-income holdings will increase slightly, as investors will move some of their increased allocations and short–term deposits back into long-term, higher-yielding investments. HNWI’s investment in cash/deposits is expected to increase from 17% in 2009 to around 19% by 2013. HNWI’s investment in real estate is expected to decline to 14% by 2013 as against 17% in 2009.

Number of wealthy people having more than USD 1 million of financial assets

0

20

40

60

80

100

120

2009 2010 2011E 2012E 2013E

29 31 35 32 29

31 3031 32 35

17 16 13 13 14

18 16 14 14 15

6 7 8 9 7 Alternative InvestmentReal Estate

Cash/Deposits

Fixed Income

Equities

84000105840

118720

132966148922

166793

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

2008 2009 2010 2011E 2012E 2013E

Page 6: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 6 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

SEGMENTATION OF INDIAN WEALTH MARKET

Private Banking

USD 1mn in free assets

Private Client

USD 250k in free assets

Premier

USD 100k in free assets

Retail

Source: PricewaterhouseCoopers

The above figure shows the different segments of Indian customers for the wealth management providers. Based on

their investible surplus funds, they can be divided into six segments as given below:

Investible Surplus

Ultra High Net worth = in excess of USD 30 million

Super High Net worth = between USD 10 and USD 30 million

High Net worth = between USD 1 and USD 10 million

Super Affluent = between USD 1,25,000 and USD 1 million

Mass Affluent = between USD 25,000 and USD 1,25,000 Mass Market = between USD 5,000 and USD 25,000

Segments of HNWIs in India by 2012

Source: Live Mint

10,50042,000

320000 350000

0

100,000

200,000

300,000

400,000

Ultra HNWI Super HNWI HNWI Super Affulent

HNI

Affluent

Emerging Affluent

Mass Retail

Page 7: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 7 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

WEALTH MANAGEMENT VALUE CHAIN

Private Banks; Trusts Asset Managers Brokers

Advice-Oriented Product-Oriented

WEALTH MANAGEMENT RANGE

Student Start of Career Career Established

Retirement

Liquidity Management (Cash Management)

Deposit based comfort A/C

Credit Cards

Comfort A/C with credit limit

Gold Card

Premium A/C

Platinum Card

Premium A/C

Platium Card

Overnight money A/C

Money Market & Fixed Income Fund

Near Money Market Fund

ZINS Plus

Overnight money A/C

Money Market & Fixed Income Fund

Near Money Market Fund

ZINS Plus

Wealth Formation (Savings Plans)

Top Portfolio

Flagship Portfolio

Titan Portfolio

Top Portfolio

Flagship Portfolio

Titan Portfolio

Capital formation benefit funds

Top Portfolio

Flagship Portfolio

Titan Portfolio

Wealth Optimization (Lump sum Investment)

Absolute return Portfolio

Holding & Private Equities

Modular Wealth Management

Individual Wealth Management

Premium Portfolio

Titan Portfolio

Wealth Management Process from a Client Advice Heritage

Client Advisory

Driven

Objective Setting

Asset

Allocation

Product

Selection

Trading

Product- Driven

Wealth Management Process from a Product-Driven Heritage

Page 8: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 8 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

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GROWTH OF ASSET UNDER WEALTH MANAGEMENT (AUWM) IN INDIA

Total AUWM growth in India (USD billion)

Source: Northbridge Capital Research

The total assets under wealth management in India are expected to grow at around 33 per cent YoY from USD 165

billion in 2009 to over USD 500 billion in 2013.

Region-wise Investment in India

Based on the most active regions in India, the western region dominates with 61 per cent of the investment activity.

Northern region a distant second with 17 per cent while the eastern region is the least active with only 6 per cent.

165218

288

380

502

0

100

200

300

400

500

600

2009 2010 2011E 2012E 2013E

61%17%

11%

6%

West

North

South

East

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Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 9 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

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REGULATION

Registration:

No person shall act as portfolio manager unless he holds a certificate granted by the Board (SEBI).

An application by a portfolio manager for the grant of a certificate shall be made to the Board and shall be accompanied

by a non-refundable application fee.

Registration Fees:

Every portfolio manager shall pay a non-refundable fee of USD 2174 (INR one lakh) along with the application for

grant or renewal of certificate of registration.

Every portfolio manager shall pay a sum of USD 21740 (INR ten lakh) as registration fees at the time of the grant of

certificate by the Board.

Every portfolio manager shall pay a renewal fee of USD 1087(INR five lakh) upon grant of renewal.

The following criterion has to be met for registration:

The applicant is a body corporate;

The applicant has the necessary infrastructure such as adequate office space, equipments and the manpower to

effectively discharge the activities of a portfolio manager

The principal officer of the applicant has either

A professional qualification in finance, law, accountancy or business management from a university or an

institution recognized by the Central Government or any State Government or a foreign university;

Or

An experience of at least ten years in related activities in the securities market as a portfolio manager, stock

broker or as a fund manager.

The applicant has in its employment minimum of two persons who, between them, have at least five years

experience in related activities in portfolio management or stock broking or investment management or in the areas

related to fund management;

The capital adequacy requirement shall not be less than the Networth of USD 4.35million( INR two crore)

Minimum portfolio size:

For an investor to avail PWM services, the minimum portfolio size should be Rs.1million. An investor can also open a

PWM account by transferring his existing portfolio of stocks or mutual funds.

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Fees to be charged:

The SEBI (Portfolio Managers) Regulations, 1993, have not prescribed any scale of fee to be charged by the portfolio

manager to its clients.

However, the regulations provide that the portfolio manager shall charge a fee as per the agreement with the client

for rendering portfolio management services.

The fee so charged may be a fixed amount or a return based fee or a combination of both. The portfolio manager

shall take specific prior permission from the client for charging such fees for each activity for which service is

rendered by him directly or indirectly (where such service is outsourced).

The Board on being satisfied that the applicant fulfils the requirements specified above shall send intimation to the applicant and on receipt of the payment of registration fees grant a certificate.

Page 11: Northbridge Capital - India Wealth Management Research

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KEY PLAYERS

Aditya Birla Money Mart Ltd

Date of Inception 1999

Assets Under Management USD 100 million

Number of Clients Over 260,000

Distributors Multiple Distribution

Product & Services Mutual Fund, PMS, Direct Equity, Structured Products, Alternate Asset

Products, Real Estate, Loan against Securities & Mutual Funds, Gold, Life

Insurance, Wealth Management

Description Aditya Birla Group enjoys a leadership position in all the sectors in which it

operates and its operations span 25 countries across six continents. Aditya

Birla Money Mart is having presence through its 37 branches and through a

network of 7,000 business associates across more than 100 centres. The

company caters to the corporate and institutional segment, wealth

management.

Growth in AUM (USD million)

Source: Northbridge Capital Research

85

100109

120132

0

20

40

60

80

100

120

140

2009 2010 2011E 2012E 2013E

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Anand Rathi Financial Services Ltd

Date of Inception 1994

Assets Under Management USD 200 million

Number of Clients Over 11000

Distributors Multiple Distribution

Product & Services Private Wealth Management, Investment Banking, Institutional Equities,

Investment Services

Description Anand Rathi is a leading full service investment bank offering a wide range

of financial services and wealth management solutions to institutions,

corporations, high-net worth individuals and families. The entire firm’s

activities are divided across distinct client groups: Individuals, Private

Clients, Corporate and Institutions and was recently ranked by Asia Money

2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich

people.

Growth in AUM (USD million)

Source: Northbridge Capital Research

180200

220242

266

0

50

100

150

200

250

300

2009 2010 2011E 2012E 2013E

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Angel Broking Ltd

Date of Inception 1987

Assets Under Management USD 104 million

Number of Clients Over 4700

Distributors Multiple Distribution

Product & Services Equity Trading, Commodities, PMS, Mutual Funds, Life Insurance, Personal

Loans, IPO, Depository Services, Investment Advisory, NRI Services

Description Angel has emerged as one of the most respected stock-broking and wealth

management companies in India. Angel is committed to providing ‘Real

Value For Money’ to all its clients, with its unique retail-focused stock trading

business model.

Growth in AUM (USD million)

Source: Northbridge Capital Research

95104

115127

140

0

20

40

60

80

100

120

140

160

2009 2010 20011E 2012E 2013E

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Alankit Assignments Ltd

Date of Inception 1991

Assets Under Management USD 100 million

Number of Clients Over 5900

Distributors Multiple Distributors

Product & Services Wealth Management, PMS, Institutional Equity, Insurance, Mutual Funds, IPO’s, Depository Participant, RTA, Arbitrage, Commodities, Currency Derivatives, Derivatives, Equities

Description Alankit group is a conglomerate of 12 group companies. The group has

evolved from largely Financial & Share Broking Company into a diversified

Business House. It is a professionally managed group, led by a team of level

headed personnel with outstanding managerial skills.

Growth in AUM (USD million)

Source: Northbridge Capital Research

91100

115126

139

0

20

40

60

80

100

120

140

160

2009 2010 2011E 2012E 2013E

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ASK Investment Managers Private Ltd

Date of Inception 1983

Assets Under Management USD 195 million

Number of Clients 10800

Distributors Multiple distribution

Product & Services PMS, Wealth Management, Property Investment Advisors

Description The ASK Group is a diversified Financial Services group renowned for its

strong research based investment advice. Today it is the leader in the areas of

portfolio management and investment advisory services

Growth in AUM (USD million)

Source: Northbridge Capital Research

187 195214

235

259

0

50

100

150

200

250

300

2009 2010 2011E 2012E 2013E

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HSBC Private Bank

Date of Inception 2006

Assets Under Management USD 210 million

Number of Clients 12000

Distributors Multiple Distribution

Product & Services Global Trade Solutions, Cash Management, Factoring Solutions, Business

Current Accounts, Business Loans & Overdrafts, Foreign Exchange Services,

Wealth Management

Description HSBC asset management in India is part of the core global investment

management business of HSBC group. PMS business is offer advisory

solutions to large institutional investors, insurance companies and high net

worth individuals.

Growth in AUM (USD million)

Source: Northbridge Capital Research

198 210231

254 280

0

50

100

150

200

250

300

2009 2010 2011E 2012E 2013E

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Darashaw & Company Ltd.

Date of Inception 1938

Assets Under Management USD 207 million

Number of Clients Over 11500

Distributors Multiple Distribution

Product & Services Wealth Management, Investment Banking, Equity, Debt Intermediation, Consultancy, Retirement Benefits

Description It is amongst the oldest, continuously managed broking and investment

banking house in India. Today it’s a leading broking and investment bank

offering an increasing range of services, including consultancy, to meet its

client’s financial and strategic objectives with discretion and trust. It is spread

across 12 cities in India and has recently set up operations in Singapore.

Growth in AUM (USD million)

Source: Northbridge Capital Research

190207

227.7250.47

275.52

0

50

100

150

200

250

300

2009 2010 2011E 2012E 2013E

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Edelweiss Capital Ltd

Date of Inception 2007

Assets Under Management USD 722 million

Number of Clients Over 12,500

Distributors Multiple Distribution

Product & Services PMS, Direct Equity, Structured Products, Mutual Funds, Insurance, Real

Estate Funds, IPO, Art Funds, Derivatives Strategies, Wealth Management

Strategy

Description Edelweiss current businesses include investment banking, securities broking

and investment management. They provide a wide range of services to

corporations, institutional investors and high net-worth individuals.

Growth in AUM (USD million)

Source: Northbridge Capital Research

656722

794873

961

0

200

400

600

800

1000

1200

2009 2010 2011E 2012E 2013E

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Emkay Global Financial Services Ltd. (EMKAY)

Date of Inception 1995

Assets Under Management USD 114 million

Number of Clients Over 6800

Distributors Multiple Distribution

Product & Services Institutional Equities, Wealth Management, Investment Banking, Insurance, Investor Relations, Commodity Trading, Equity Broking, PMS, Depository, Non-Banking Financial Services

Description It is a truly Indian, dynamic and visionary firm, and a trusted name in the

financial arena. It is a full-service brokerage house providing advisory

services, such as investing, trading, research, financial planning and portfolio

management to high net-worth individuals and corporate

Growth in AUM (USD million)

Source: Northbridge Capital Research

102114

125.4137.94

151.73

0

20

40

60

80

100

120

140

160

2009 2010 2011E 2012E 2013E

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Karvy Stock Broking Ltd

Date of Inception 1983

Assets Under Management USD 725 million

Number of Clients 28,000

Distributors Multiple Distributors

Product & Services Private Wealth Management, Equities & Derivatives, Commodities, Mutual

Fund Services, Depository Services, Insurance Broking Services, Bonds &

Deposits, Realty Services, PMS, Currency derivatives, Institutional Services

Description Karvy ranks among the top five brokers in India. It has always believed in

adding value to services it offers to clients. A top-notch research team

supports its employees to advice clients on their investment needs.

Growth in AUM (USD million)

Source: Northbridge Capital Research

675725

797.5877.25

964.98

0

200

400

600

800

1000

1200

2009 2010 2011E 2012E 2013E

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Religare Macquarie Wealth Management Ltd

Date of Inception 2006

Assets Under Management USD 202 million

Number of Clients Over 13,798

Distributors Multiple Distributors

Product & Services Wealth Management Services, Mutual Funds, PMS, Insurance, Alternative

Investments, Offshore Investment Services, Equities & Commodities,

Derivatives, Capital Market Lending

Description Religare operates its wealth management business in partnership with

Macquarie through the joint venture. They are managing, preserving and

building the wealth of the Indian HNIs.

Growth in AUM (USD million)

Source: Northbridge Capital Research

183202

222.2244.42

268.86

0

50

100

150

200

250

300

2009 2010 2011E 2012E 2013E

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India Infoline Investment services Ltd

Date of Inception 1995

Assets Under Management USD 112 million

Number of Clients Over 7,867

Distributors Multiple Distributors

Product & Services Equities, Investment Banking, Insurance, Wealth Management, Asset

Management, Mutual Funds, Loans

Description IIFL offers advice and execution platform for the entire range of financial

services covering products ranging from Equities and derivatives,

Commodities, Wealth management, Asset management, Insurance, Fixed

deposits, Loans, Investment Banking, GoId bonds and other small savings

instruments.

Growth in AUM (USD million)

Source: Northbridge Capital Research

102112

123.2135.52

149.07

0

20

40

60

80

100

120

140

160

2009 2010 2011E 2012E 2013E

Page 23: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 23 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

Motilal Oswal Financial Services

Date of Inception 1987

Assets Under Management USD 159.78 million

Number of Clients Over 16,800

Distributors Multiple Distributors

Product & Services Derivatives, Wealth Management, Investment Banking, Private Equity, Asset

Management, IPO, Loan against Shares, Depository Services, Mutual Fund

Distribution, Commodities, Insurance Distribution

Description It is a well diversified financial services firm offering a range of financial

products and services. They have a diversified client base that includes retail

customers including high net worth individuals, mutual funds, foreign

institutional investors, financial institutions and corporate clients.

Growth in AUM (USD million)

Source: Northbridge Capital Research

138.95

159.78167.77

176.16 184.97

0

20

40

60

80

100

120

140

160

180

200

2009 2010 2011E 2012E 2013E

Page 24: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 24 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

Reliance Money

Date of Inception 2008

Assets Under Management USD 800 million

Number of Clients Over 16,870

Distributors Multiple Distributers

Product & Services Wealth Management, Equities, Commodities, Mutual Fund, IPO Investment,

Equity-linked PMS, Insurance, Structured Products

Description Reliance Securities is the broking arm of Reliance Capital. It provides access

to equities, equity option and commodities futures, wealth management,

wealth management services, mutual funds, IPO, offshore investments and

investment banking. It has presence with over 6,100 outlets.

Growth in AUM (USD million)

Source: Northbridge Capital Research

760800

840882 926.1

0

100

200

300

400

500

600

700

800

900

1000

2009 2010 2011E 2012E 2013E

Page 25: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 25 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

SMC Global Securities Ltd

Date of Inception 1990

Assets Under Management USD 198 million

Number of Clients Over 11,568

Distributors Multiple Distributors

Product & Services Wealth Management, Investment Banking, Insurance, Online Trading, Broking

Description SMC group is India’s leading share and stock broker, provides a wide range

of financial services and investment solutions. Over the years, the company

has expanded its operations domestically as well as internationally. It has

expanded its operations domestically as well as internationally and it has the

network of over 2500 offices spread across 425 cities in India.

Growth in AUM (USD million)

Source: Northbridge Capital Research

181 198217.8

239.58263.54

0

50

100

150

200

250

300

2009 2010 2011E 2012E 2013E

Page 26: Northbridge Capital - India Wealth Management Research

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NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

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RECENT DEALS

Atlanta based Wealth Management Company Reliance Financial Corporation announced that its subsidiary

Reliance Trust Company had acquired Harrington Wealth Management Company which is a provider of trust and

investment management services to individuals and institutional clients.

Karvy Private Wealth acquired the wealth management business of iTrust Financial Advisors with operations in

Delhi, Bangalore and Hyderabad. It has acquired the entire business and assets of iTrust.

Future Capital Holding is to exit from its two joint venture companies i.e. Centrum Capital- FCH Centrum Direct

Ltd and FCH Centrum Wealth Managers Ltd. It wants to do solely into retail finance, broking and wealth

management.

Standard Chartered Bank acquired the remaining 25.1% stake in Standard Chartered-STCI capital Markets from

Stock trading Corporation. STCI Capital Market currently offers retail & institutional broking, wealth management

products and investment banking services.

Tata Capital is planning to raise USD 1 billion for its private equity. It has also started its international fund raising

process. Its wealth management business is developing and is planning to foray into the securities broking

business.

Qatar’s largest investment bank will buy 25% stake in Mumbai-based Ambit group. This will help Ambit to expand

its investment banking, advisory and private wealth businesses.

Page 27: Northbridge Capital - India Wealth Management Research

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NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

ABOUT RESEARCH

Northbridge Capital’s Research team generates Sector and Company research for Indian companies. Should you wish to request a specific research report, please contact Monali Doshi at [email protected] Northbridge Capital’s Research team also published several periodic updates of relevance to foreign and Indian companies including M&A activity, Debt and IPO issuance etc Research reports on sectors, stocks are also available to clients online and can be accessed at www.northbridgeasia.com

About Northbridge Capital

- Northbridge Capital is an Investment Bank(Category I Merchant Bank) regulated by the Securities &

Exchange Board of India.(Sebi Registration: INM000011500)

- We assist companies with capital raising through various debt and equity instruments in public and

private markets and M&As

- With offices in Hong Kong, Bangkok and Mumbai, Northbridge assist global companies with M&As,

identifying local partners, India entry strategies and other merchant banking activities

- Northbridge assists domestic companies with raising capital in India and overseas both in equity and debt

markets and with Acquisitions in India and abroad

- Northbridge Capital has 6 Practice areas and offers buy side and sell side advice across these areas:

o Consumer

o Technology

o Financial Services

o Life Sciences

o Industrials

o Real Estate

Page 28: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 28 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

CONTACT INFORMATION

INDIA OFFICE Monali Doshi Email: [email protected] Tel: +91-22-22901715 Fax: +91-22-42643612 Northbridge Capital Ltd R-501, Remi Bizcourt Shah Industrial Area Off Veera Desai Road Andheri (West), Mumbai 400 053, India Website: http://www.northbridgeasia.com HONG KONG OFFICE Sam Farrimond Email: [email protected] Tel: +852-28628053 Fax: +852-22909154 Northbridge Partners (Asia) Ltd 22/F, 3 Lockhart Road Wanchai, Hong Kong

Page 29: Northbridge Capital - India Wealth Management Research

Northbridge Capital is an Investment Bank (Category | Merchant Bank) regulated by SEBI 29 SEBI Registration: INM00001150

NORTHBRIDGE CAPITAL

Asia Investment Banking Research

India Wealth Management Research

Copyright © 2011. Northbridge Capital. All Rights Reserved. www.northbridgeasia.com

DISCLAIMER

- This information is for Institutional Investors and Northbridge Capital clients only. It is not meant for

public circulation

- No transmission of this information in any form or medium is allowed without the written authorization

of Northbridge Capital

- This is not a solicitation to buy or sell any security in any jurisdiction.

- The exchange rate of INR/$ is taken as Rs. 45/$.


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