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Religare Enterprises, the financial services group, has moved to buy a part of the portfolio management services (PMS) business of N Jayakumar’s Prime Securities.
PMS are asset management services for wealthy (high net worth) individuals (HNIs). The acquisition is a part of Religare’s expansion plans in this segment, according to a person familiar with the matter.
A spokesperson for Religare confirmed the deal, adding it had also taken on board T S Anantakrishnan, an ex-Goldman hand who was working with Prime. “Religare Portfolio Managers & Advisors (RPMA) has acquired a part of the PMS business of Prime Broking. The team led by Anantakrishnan has moved to the Religare platform and are responsible for alternate/hedge fund strategies as part of Religare’s broader alternatives focused global asset management platform. All clients who consented to move to Religare had their complete portfolios transferred to Religare,” said a spokesperson in an emailed reply to a Business Standard query.
It declined to comment on the assets acquired or the valuations for the deal. An email to Prime did not receive a reply. Anantakrishnan has been designated as managing director at Religare.
Prime’s PMS business had been hit following a regulatory probe into the company for alleged market malpractices. The National Stock Exchange had barred its related entities from trading in July 2013, following an investigation into activities by Prime involving the shares of Gitanjali Gems. It had also halted payout or settlement of the trades under investigation. It declared Prime a defaulter in October 2013.
A number of HNIs who were part of Prime’s PMS business were said to have been affected. Prime had informed shareholders in November 2013 that it had filed a suit against NSE for losses caused on account of the moves. It had also filed an appeal in the Securities Appellate Tribunal against the order declaring it a defaulter.
Religare had previously bought a Delhi-based asset management and investment advisory, PN Vijay Financial Services, in February 2013. It had also picked up a 70 per cent stake in private equity firm Northgate Capital in 2010-11. It also acquired a 55 per cent stake in Landmark Partners, involved in the real estate and private equity business. The deal was completed in 2011-12.
