Religare buys 55% in US asset mgmt firm for Rs 770 cr

Financial Services firm Religare Enterprises on Friday said that its arm has acquired 55 per cent stake in US-based private equity and real estate fund-of-funds asset manager Landmark Partners for about Rs 770 crore. HT reports. American entry

Financial Services firm Religare Enterprises on Friday said that its arm has acquired 55 per cent stake in US-based private equity and real estate fund-of-funds asset manager Landmark Partners for $172 million (about Rs 770 crore).

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Landmark has total assets under management worth $8.3 billion and the deal values the company at 3.8% of its total assets.

“The parties have signed a definitive agreement for Religare to acquire a 55% stake in the business of Landmark Partners for a consideration of up to $172 million,” said the company in a statement.

With the acquisitions of Northgate (earlier this year) and Landmark Partners now, Religare expects to garner a total revenue of $70 million in 2010-11 and an EBIDTA of $35 million.

The company, which had earmarked funds of $1 billion for buying asset managers still has a large portion of it left.

“Of the $300-million equity portion, we still have 60-70% left for more acquisitions,” said Shachindra Nath, group CEO, Religare Enterprises.

Nath, who is busy building a global asset management business for the company, sees this as a game changer, which will take the total assets under management of the group to $15 billion.

“In our journey, Landmark is a game changer because its size and pedigree would allow the world to look at a company from India,” said Nath, who now plans to target traditional asset classes and will continue to build a portfolio of companies.