By Siddhi Nayak and Sarita Chaganti Singh
MUMBAI/NEW DELHI (Reuters) - UBS is in talks to form an Indian wealth management joint venture with Mumbai-based 360 One WAM, two sources with direct knowledge of the matter told Reuters.
The joint venture would help the Swiss bank to expand its Indian wealth business to 'high net worth individuals' from its existing focus on 'ultra high net worth individuals', they said.
India's wealth management sector is being driven by rapid economic growth and a domestic market rally. It was worth $429.1 billion in 2023 and is forecast to grow at a compound annual rate of 4.6% between 2025 and 2029, TechSci Research said.
Globally, UBS had $4 trillion worth of invested assets at the end of June, while 360 One, previously known as IIFL Wealth Management, has 5.21 trillion rupees ($62.28 billion).
UBS declined to comment, while 360 One said it did not comment on speculation.
UBS has held preliminary talks with 360 One and plans to hold a stake of up to 26% in the venture, with a deal expected in the next few months, said the sources, who declined to be named as they were not authorised to talk to the media.
While Switzerland's biggest bank has been exploring the possibility of setting up a wealth joint venture in India and would be open to owning a majority stake, no decision had been taken about a partner, another source said.
The bank's Indian presence has been bolstered by the integration of the local operations of Credit Suisse, which it last year in a Swiss government engineered rescue.
If the India joint venture plan materializes, it would be the second country in the Asia Pacific region where UBS would enter into an equity partnership with a local player.
UBS signed a deal with Sumitomo Mitsui (NYSE:SMFG) Trust in Japan in 2019 to create a venture majority-owned by the Swiss bank that expanded the services both firms can offer their wealthy and ultra-wealthy customers.
($1 = 83.5120 Indian rupees)