Mumbai-based financial services group, ASK, is planning to set up a $1 billion (approximately Rs 4,040 crore) private equity fund by the end of financial year 2009-10.
According to industry sources, the group, promoted by brothers Asit & Sameer Koticha, is in the advanced stages of finalising the blueprint of the PE fund.
The group, known for its broking business, is expected to make a formal announcement before the end of this calendar year. In fact, the group is also looking to start a mutual fund and real estate businesses in future.
“They are currently in the process of making the white paper for this fund. In the next three or four months, the group would start the PE business. They are aiming to set up a corpus of $1 billion by the end of March 2010,” a source told ET.
When contacted, Sameer Koticha confirmed that the group is in the process of setting up PE business but refused to elaborate. “Since things are still being worked out, the only thing I can say is that it will be rolled out soon,” he
said.
On the funding part, the source revealed that it would be mainly through internal accruals. “The initial corpus will be set up through internal accruals. Once the fund is initiated, the group is likely to bring in strategic partners to expand the corpus,” the source said.
Private equity business is currently hot with Indian broking houses houses. Earlier this year, Motilal Oswal and Religare had announced their foray into this segment.
On the mutual fund business, the source said that the move is part of the group’s strategy to start own asset management venture. “The business aligns with the long-term goals of the group to create an umbrella group where
customers are able to buy everything under the same roof,” the source said.
Recently, the group started wealth management & financial planning business under subsidiary company, ASK Wealth Advisors. The new entity is planning to set up offices across 25 cities in the next three years.
It has also applied to insurance regulator Insurance Regulatory Development Authority for insurance brokering business, which will be floated under the name of ASK Insurance and Risk Advisors, a subsidiary of ASK Wealth Advisors.
Source: Economic Times