Equities

Nuvama Group Targets $479 Million from Middle East Wealth for Expansion

POSITIVE

Nuvama targets $479 million with significant Middle East focus, leveraging India's financial growth and strategic partnerships.

By Alex P. Chase

4/4, 00:03 EDT
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Key Takeaway

  • Nuvama Group aims to raise $479 million for its Crossover IV fund, with $300 million expected from the Middle East's wealthy.
  • The firm plans to introduce a new long-short equities product and market a $360 million real estate fund, expanding its investment portfolio.
  • Partnering with Dubai-based Greenstone Equity Partners and leveraging regional banks' networks for broader Middle East engagement.

Nuvama's Strategic Expansion

In a bold move to harness the wealth of the Middle East, the Nuvama Group, backed by PAG, is setting its sights on tapping into the affluent market of the region. The Mumbai-based asset management unit is poised to raise a significant sum for its Nuvama Crossover IV fund, targeting 40 billion rupees ($479 million), with a substantial portion, at least $300 million, expected to come from family offices and wealthy individuals in the Middle East. This initiative marks a pivotal moment for Nuvama, as it ventures into international waters, aiming to capitalize on the buoyant Indian stock markets and the country's growing wealth.

Eyeing the Middle East's Wealth

Anshu Kapoor, president and head of the business at Nuvama, highlighted the strategic approach of the firm as it seeks to expand its footprint beyond Indian shores. "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," Kapoor stated, underscoring the firm's ambition to cater to the global appetite for Indian market investments. This move is particularly timely, as the United Arab Emirates emerges as a prime destination for private wealth, especially in the wake of capital shifts prompted by the geopolitical landscape.

Diverse Investment Opportunities

Nuvama's foray into the Middle East is not limited to the Crossover IV fund. The firm is also set to introduce a new public equities long-short product, aiming to raise an additional $100 million from the region. Both funds are strategically registered in India’s burgeoning financial hub, Gujarat International Finance Tec-City (GIFT City), showcasing Nuvama's commitment to leveraging India's financial infrastructure for global outreach.

Strategic Partnerships and Future Plans

To facilitate its ambitious fundraising efforts, Nuvama has partnered with Dubai-based Greenstone Equity Partners, alongside plans to utilize the distribution networks of regional banks. This collaborative approach not only amplifies Nuvama's reach but also solidifies its presence in the Middle East's investment landscape. Furthermore, the firm is gearing up to market its $360 million commercial real estate fund, a joint venture with Cushman & Wakefield Plc, initially to domestic investors before taking it offshore, indicating a broad spectrum of investment avenues for potential investors.

Growth and Expansion

Kapoor's vision for Nuvama extends beyond immediate fundraising. With a keen eye on the future, he anticipates the firm's assets under management to swell to 200 billion rupees in the next 12 to 18 months, a significant leap from the current 70 billion rupees. This growth trajectory is supported by plans to bolster the team across various strategies, adding another 10 to 15 members to the already robust team of 75 in the coming months. Such strategic expansions underscore Nuvama's dynamic approach to asset management, wealth management, and capital markets, positioning it as a formidable player in the financial sector.