India's Religare taps war chest for US wealth firm

Global financial services group Religare Enterprises has approved a $1bn commitment for strategic investments in diversified asset management businesses globally, and approved an initial strategic investment in US-based private equity firm Northgate Capital.

Global financial services group Religare Enterprises has approved a $1bn commitment for strategic investments in diversified asset management businesses globally, and approved an initial strategic investment in US-based private equity firm Northgate Capital.

Religare already operates globally. In India, its largest market, the firm is active in insurance, asset management, broking and wealth management. It serves over a million clients, including corporates, institutions, high net worth families and retail investors. The parent group encompasses other businesses globally such as diagnostics, travel, IT products and solutions.

San Francisco-based Northgate and Religare have signed a definitive agreement for Religare to acquire a majority equity interest in Northgate's Management Company.

Northgate's five Partners -- Hosein Khajeh-Hosseiny, Jared Stone, Mark Harris, Brent Jones and Thomas Vardell -- will retain controlling interests in Northgate's General Partner entities and maintain a significant equity stake in the Management Company.  In addition, there will be no changes to Northgate's management team, investment staff, or day-to-day operations, investment committee and investment processes as a result of the partnership. The transaction is subject to regulatory approvals and is expected to close in the first half of 2010.

Religare's asset management strategy is to partner with "best-of-breed" asset management firms from around the world, operating within a variety of asset classes and investment disciplines.  The company provides strategic support and capital to its affiliated boutiques, while leaving their existing investment professionals in charge of day-to-day operations and all investment decisions.

Northgate Capital, founded in 2000, manages a series of venture capital and private equity funds, providing access to underlying fund and direct investment opportunities with private equity and venture capital managers. Northgate manages approximately $3bn for over 400 institutional and high net worth families and individuals.