India-based L&T Finance has brokered a deal to sell its wealth management business in Dubai to InCred Capital.
The deal, whose financial terms have not been revealed, is said to be part of L&T Finance’s strategy to divest its non-core business and focus on lending activities.
As part of this strategy, L&T Finance divested its entire stake in L&T Capital Markets (LTCM) to IIFL Wealth Group in August this year. LTCM was the domestic wealth management arm of the company.
L&T Finance launched first launched wealth management services in Dubai in February 2016.
The West Asian wealth management business caters primarily to non-resident Indians residing in based in the UAE and the neighbouring nations.
It offers wealth management solutions by way of arranging deals in credit and investments, providing advice on financial products and services to HNW individuals.
Two people familiar with the development told The Economic Times that the wealth book is estimated to be about $200-250m which may be valued between 2% and 5% of the book size.
Dubai wealth management book is not as large as the company’s Indian wealth management book sold to IIFL, the publication added.
The latest deal follows L&T Finance receiving an investment of $550m in an investment round led by World Bank’s International Finance Corporation in July this year. The funding round was also joined by banking giants such as BNP Paribas, Citibank, and DBS Bank.
InCred Financial Services, which is also based in India, had launched operations in January 2017. It is backed by former Deutsche Bank co-CEO Anshu Jain.