RELIGARE Enterprises, the Indian financial services group, yesterday agreed to take a majority stake in private equity group Northgate Capital, as part of a new commitment to invest up to $1bn (£649m) in asset management firms across the globe.
The partnership with Northgate, which has $3bn under management and is based in California and London, is the first US deal for Religare, which expects to announce its next investment within months.
Under the terms of the agreement, Religare will acquire over 60 per cent of the company, while Northgate’s five partners will maintain a significant equity stake and continue to run the group’s day-to-day operations.
Dr Hosein Khajeh-Hosseiny, who runs Northgate’s London office and heads up its private equity team, said the partnership would strengthen the firm’s presence across the emerging markets, particularly in Asia.
DIRECTOR AT INVESTMENT BANK JEFFERIES
LEAD adviser to Religare on its acquisition of a stake in Northgate was Jefferies, where the team was headed by managing director Karamvir Gosal.
Gosal joined Jefferies’ asset management investment banking practice in 2008 from the financial institutions group at Credit Suisse and has previously worked on deals including Piper Jaffray’s acquisition of Fiduciary Asset Management and the sale of Evaluation Associates Capital Markets to Mellon Financial.
Religare also took advice from its in-house team at Religare Capital Markets, while Northgate was advised by Credit Suisse Securities in the US.
“[This] completes our search for a principled and distinctive industrial and capital markets partner in the emerging world,” he said.
Religare, founded by the family of Indian industrialist Malvinder Singh, employs 10,000 staff across the world in insurance, asset management, broking and lending services, investment banking and wealth management. Its largest presence is in India.