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.
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