Anand Rathi Wealth, a listed pure play wealth management service provider, is open to go in for acquisitions as part of its overall growth strategy in the wealth management space, said Anand Rathi, Founder & Chairman of Anand Rathi Group.
“We are open to the inorganic route. In fact, we had made an acquisition (Religare Wealth Management practice) four years back. We will be willing to acquire more. Irrespective of how inorganic pans out, we are looking to grow our organic AUMs by 20-25 per cent and profits by 25 per cent this fiscal,” Rathi told BusinessLine.
For 2022-23, Anand Rathi Wealth, which is managing about ₹35,000 crore AUM, is eyeing 20-25 per cent growth. It has guided for bottomline growth of 25 per cent at ₹155 crore and revenue growth of ₹495 crore for the current fiscal.
“Q1 was a tough quarter. Market volatility was high. But we still ended up with record inflow and onboarded record new clients. We don’t think market conditions will affect our performance. We are fully hopeful of not only meeting our guidance but also bettering that,” he said.
Focus on HNIs
Rathi said Rathi Wealth wants to be the “go to” player for high networth individuals (HNIs) looking for wealth management services. “As a strategy, we are focused on HNIs (with assets of ₹5 crore to ₹50 crore) as our preferred segment and that is where we want to expand. We don’t target ultra high networth people. We target HNIs,” he added.
As part of its offering, this company has only two products — mutual funds (MF) and market linked debentures (MLD).
Going forward, Anand Rathi Wealth will focus on both MF (accounts for 40 per cent of revenues) and MLD (60 percent of revenues)
“Sale of MF is increasing. We are trying to create combination that gives returns. Our growth in MF is going to be higher. In next two years our MF revenues will be higher”, he added
Rathi also said that the company has no plans to offer its own portfolio management service (PMS) or launch an Alternate Investment Fund (AIF). “We can always manufacture our own product. But we don’t want to do that as that would lead to conflict of interest situation”, he added.