Financial Services
Commercial due diligence of a leading wealth management company
08 Apr 2020
Context
- Client Description: A large global PE investor
- Opportunity: The client wanted to invest in a leading Indian wealth management company and hence specific objectives to understand:
- Wealth management market of India, its size and growth potential as per target market products
- Benchmark the Indian wealth management industry on various parameters such as products features, customer types, brand awareness, etc
- Impact of various government regulation on both wealth management products and companies in India
Our Approach
The approach was divided into 3 sections:
Market potential and growth
- The estimated total addressable market for wealth management in India across asset classes using both top-down and bottom-up approaches
- Derived total addressable wealth from total wealth invested in the addressable assets by the HNIs
Competitive benchmarking
Benchmarked the wealth management market through primary and secondary research in 3 stages:
- Mapped the competitive landscape of WMCs in India
- Identified key competitive parameters such as product offerings, sales model, acquisition strategies and quality of advice
- Benchmarked the competitors using quantitative surveys and in-depth conversations with Relationship Managers (RMs), customers as well as industry experts
Regulation and associated risk
Identified the impact of various regulatory changes on wealth management products such as mutual funds, structured products, and AIFs
- Tracked and analyzed impact of various regulatory changes over the last 5 decades
- Conducted expert interviews to understand the expected regulatory policy changes and their implementation to leverage findings to improve our revenue forecasting model
Key Insights / Outcomes
Structured the complete competitive landscape and its growth potential for Indian wealth management market
Identified key parameters impacting growth of wealth management companies in the highly regulated market
Enabled the client to understand the opportunities in the market and the overall growth potential of the target market segment
Praxis Value Delivered
- Benchmarking model to assess the strength of wealth management companies
- Market map and sizing model to assess the growth potential of the market
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