Religare to Take Controlling Stake in Northgate Capital

February 22, 2010

Religare Enterprises Ltd., the Indian financial services group, agreed to take a controlling stake in California-based private equity firm, Northgate Capital, in its first U.S. acquisition.

Religare Enterprises Ltd. (“Religare”) (RELG.BO), the Indian financial services group, agreed to take a controlling stake in California-based private equity firm, Northgate Capital (“Northgate”), in its first U.S. acquisition.  Religare will purchase 60 percent of Northgate Capital, as the first step in establishing a global asset management business.  Northgate currently has $3 billion in assets under management.  The transaction terms were not disclosed but estimates, based on similar transactions, value the deal at as much as $200 million.  The deal is expected to close in the first half of 2010.

The transaction is Religare’s first U.S. deal and part of a board approved plan for the company to spend $1 billion on strategic investments, primarily in the United States.  Religare expects to end the year with at least $60 billion to $65 billion of assets under management through further acquisitions.  Religare intends to buy controlling stakes in independent asset managers in a range of different asset classes including equity, fixed income and private equity.

To view the Press Release, please click here.


Categories

Investment Manager M&A, Private Equity M&A, Transactions