Investment group PAG has acquired a 51% stake in India-based Edelweiss Group’s Wealth Management business for around $300m (INR22bn).

The deal will leverage PAG’s capital, business expertise and global experience for business growth. It is subject to customary regulatory approvals.

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This investment will make PAG a majority owner of the Edelweiss Wealth Management (EWM) of Edelweiss Global Investment Advisors.

Edelweiss Asset Management, an alternatives and asset reconstruction platform, is not part of the deal.

EWM offers wealth management services to more than 2,400 wealthy families in India. It also caters to nearly 610,000 high net-worth individuals and other affluent clients.

The business’ customer assets under advice increased at approximately 44% cumulative annualised growth rate from INR185bn in fiscal year 2015 to INR1.27 trillion in the first quarter of fiscal year 2021.

Edelweiss added that the INR300 trillion wealth management industry in India is growing at a 11.3% five-year cumulative annualised growth rate. It is estimated to rise to INR540 trillion in the coming five years, providing opportunity for EWM.

Edelweiss Group chairman and CEO Rashesh Shah said: “In PAG we have found a great partner with global experience and strong capabilities.

“This investment endorses our core strategy of incubating businesses, building value and growing them into market leaders as they gradually move from inter-dependence to independence.”

PAG managing director and head of India Private Equity Nikhil Srivastava said: “We are eager to leverage PAG’s global experience investing in and working alongside financial services companies to support Edelweiss Wealth achieve the next level of client centric growth.”

PAG’s investment in EWM is in line with Edelweiss Group’s strategy to build self-sufficient businesses.

Last year, Edelweiss Group partnered with Bank of Singapore to access each other’s platforms.