EFG Acquires to Enter Indian Wealth Market

Nick Parmee

19 December 2007

Swiss private bank and asset manager EFG International has bought a controlling interest of 75 per cent in Stratcap Securities India from Strategic Capital Corporation, which is majority owned by its founder, Atul Sud. Subject to regulatory approval, the transaction is expected to complete during the first quarter of 2008. Terms are not being disclosed. Mumbai-based SSI offers a range of financial services to a private and institutional client base in India, encompassing mutual funds, fixed income and equities. It is described as profitable, with 24 employees including four client relationship officers and clients’ assets of SFr700 million ($606 million). The acquisition is seen by EFG as an entry to the Indian wealth management market, in keeping with its strategic goal of capitalising on new growth markets. It will also complement existing coverage of the non-resident Indian community in Asia, the Middle East and Europe. Atul Sud, the founder of SSI, will become chairman of EFG Wealth Management India. He held a number of senior roles in American Express Bank in India before setting up Strategic Capital Corporation in 1995. The management team and employees of SSI will remain in place, providing valuable continuity to clients as well as local market and technical know-how. Shankar Dey will join EFG Wealth Management India as chief executive officer. His experience includes private, corporate and investment banking, having previously held senior roles at Citibank and NM Rothschild. EFG International is known to have ambitious plans to develop a market-leading offering in India, eventually to be available from a number of locations.