Nuvama Wealth expects AUM to grow by average 15-20% this fiscal: MD & CEO Ashish Kehair

Nuvama Wealth Management, which got listed on Tuesday as the new combined entity of all the listed firms of the Edelweiss Group, expects assets under management growing by an average of 15-20 per cent through the rest of the current fiscal.

As of June 2023, it manages over Rs 2.5 lakh crore of client assets and has over 2,700 employees across 90 offices worldwide.

"I see the assets under management growing by an average of 15-20 per cent through the rest of the current fiscal ending March. Between March 2023 and June 2023, we added 30,000 crore in our AUM to Rs 2.5 lakh crore," Ashish Kehair, managing director and chief executive of Nuvama Group, told PTI after the listing of the company.

Shares of Nuvama Wealth Management rallied more than 5 per cent to close at Rs 2,564.10 on the BSE with a market value of Rs 9,000 crore.

The Nuvama Group now comprises all the companies of the Edelweiss group founded by Rakshesh Shah in 1993, barring the insurance and mutual fund businesses, and is into wealth management, asset management and capital markets.

Nuvama offers a complete suite of wealth management, asset management and capital markets services. The company serves a diversified client base including affluent, high net worth individuals, ultra-high net worth individuals, family offices, corporate and institutional clients. It's 56 per cent owned by the leading Asia Pacific-focused alternative investment firm PAG.

After listing, Edelweiss Financial will continue to hold 14 per cent stake in Nuvama, while the shareholders of Edelweiss Financial will hold 30 per cent of the paid-up share capital. Since February 2023 it has been rebranded as Nuvama.

Comparing the performance since PAG took over the company, Kehair said in FY23, its revenue grew to Rs 1,575 crore, making it the second largest wealth management firm in the country in terms of revenue, from Rs 1,000 crore, a 57 per cent growth.

Profit jumped from Rs 200 crore to Rs 368 crore during this period, again making it the second largest in the industry. In terms of AUM, it grew from Rs 1.4 lakh crore to Rs 2.5 lakh crore.

Kehair said the country is expected to become the fourth largest private wealth market globally by 2028. With wealth and financial penetration likely to double in the next five to six years, the organized wealth management industry is likely to quadruple.

Nikhil Srivastava, partner and head of India private equity at PAG, said the listing marks a significant milestone in Nuvama's remarkable growth. "We are looking forward to supporting Nuvama as it capitalises on the tremendous opportunities in the wealth management landscape here," he said.

To capitalize on these opportunities, Nuvama plans to expand its reach to more than 300 cities and grow the number of wealth managers to over 2,000 in the next five years, Kehair said.

He further noted that the company aims to scale up its alternative asset management business, extending these offerings to key offshore markets including the US, the Middle East, Europe, and the rest of Asia.

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