Sharing what I learned while analyzing 360 One WAM ltd. for the SOIC league by @Worldlywiseinvestors.
Summary:
Number of HNIs and UHNIs in India are growing at double digit CAGR. Indian wealth management industry is still under penetrated. Wealth management companies with excellent track record of performance as well as integrity may be well positioned to grow rapidly.
360 One WAM is an established business that is exclusively catering to HNIs and UHNIs since 15 years. Operating leverage is playing out nicely as the operating profit margin has expanded from 39% in FY 20 to 54% in FY 23.
In my opinion, the business is on growth trajectory along with the entire asset management sector in India.
History:
- Founded in 2008, the business was part of the IIFL group. Currently one of the largest non bank private wealth management firms in India
- Founder, Mr. Karan Bhagat, holds an MBA from IIM, Bangalore
- Rebranded from IIFL Wealth Management to 360 One Wealth and Asset Management in November 2022
- Current market cap is about 18500 crores (INR 185 Bn)
History of inorganic growth
- 2011: Acquired Pune based “Finest Wealth Managers”
- 2013: Acquired an asset management company and a PE firm
- 2016: Acquired an NBFC
- 2018: Acquired Chennai based “Wealth Advisors India” and Bangalore based “Altiore Advisors”
- 2020: Acquired “L&T Capital Markets” from L&T Finance Holdings
Services Offered
- Wealth management: Customized solutions to targeted towards HNIs and UHNIs. Services include distributors, advisors, PMS manufacturer, brokers, AIF management, MF manager
- Asset management: Less customized solutions focused towards maximizing portfolio value. Solutions include AIF, PMS and Mutual funds. Early movers in AIF space
- Estate planning: Facilitate passing of generational wealth. Largest trusteeship service in India. 650 HNI\UHNI families are clients
- Lending: An NBFC that lends to wealth management clients to serve their short term needs (working capital, acquisition, etc.). Loan book of ~5000 crores (INR 50 Bn). Typically the loan book is 1.5% to 2% of the AUM
Disclosure: This is not a recommendation. Please conduct independent due diligence. I have tracking position.
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