Nuvama Group Expands into Middle East, Targets $479 Million Fundraising

Nuvama Group targets $479 million with a focus on Middle East investors, leveraging strategic partnerships and expanding its asset management portfolio.

By Alex P. Chase

4/4, 00:02 EDT

Key Takeaway

  • Nuvama Group aims to raise $479 million for its Crossover IV fund, targeting at least $300 million from the Middle East.
  • Partnerships with Dubai's Greenstone Equity and plans for a new long-short equities product underline Nuvama's strategic Middle East expansion.
  • With current assets of 70 billion rupees, Nuvama targets a growth to 200 billion rupees in AUM within 12-18 months, planning team expansion.

Expanding Horizons

Nuvama Group, backed by PAG, is venturing into the Middle East to tap into the wealth of family offices and affluent individuals for the first time. The Mumbai-based asset management unit aims to raise 40 billion rupees ($479 million) for its Nuvama Crossover IV fund, with a significant portion, at least $300 million, expected to come from the Middle East. This move is part of a broader strategy by Indian money managers to seek capital from international markets, including the Mideast, the US, and the UK, leveraging the large Indian diaspora's interest in India's growing wealth and vibrant stock markets. The United Arab Emirates, in particular, is seen as a prime location for attracting private wealth, especially in the context of Russian capital relocation due to the Ukraine conflict.

Strategic Partnerships and Offerings

To facilitate its fundraising efforts in the Middle East, Nuvama has partnered with Dubai-based Greenstone Equity Partners. Additionally, the firm plans to utilize the distribution networks of regional banks to raise capital for its funds. Nuvama's offerings include a new public equities long-short product, aiming to secure another $100 million from the Middle East. Both funds are registered in Gujarat International Finance Tec-City (GIFT City), India's burgeoning financial hub. Following the Middle East fundraising, Nuvama intends to offer the crossover fund to investors in India and will also market its $360 million commercial real estate fund, a collaboration with Cushman & Wakefield Plc, to domestic investors before taking it offshore.

Growth and Expansion Plans

Anshu Kapoor, president and head of the business at Nuvama, highlighted the firm's ambitious growth targets and strategic focus areas. With a current asset management portfolio of 70 billion rupees, Nuvama aims to increase its assets under management to 200 billion rupees within the next 12 to 18 months. The firm is also planning to expand its team by adding 10 to 15 members across various strategies to its existing workforce of 75 in the coming months. This expansion reflects Nuvama's broader vision beyond asset management, encompassing wealth management and capital markets, with Nuvama Wealth Management Ltd. also showing significant growth, having soared 36% since its listing in September.

Management Quotes

  • Anshu Kapoor, President and Head of Business at Nuvama Group:

    "As our products mature in India, as they build a track record and scale, we test the demand outside and create a mirror version for the offshore world."