U.S. private equity firm TPG Capital is in talks to acquire a minority stake of up to 20% in Indian securities firm IIFL Capital Services, according to two sources familiar with the matter, cited by Reuters.
The development highlights the accelerating interest of global investors in India’s expanding financial services ecosystem.
The sources said due diligence is ongoing and that the transaction, if concluded, would position TPG as a strategic investor with a say in management decisions. Such an outcome would mark another high-profile foreign entry into India’s capital markets at a time when rising household wealth, deeper retail participation, and strong equity market performance are reshaping the sector.
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TPG Capital’s parent, U.S. buyout group TPG, declined to comment, while IIFL Capital Services did not respond to requests for comment.
Earlier on Wednesday, local newspaper the Economic Times reported that TPG was nearing a deal to acquire a significantly larger stake of between 30% and 40% in IIFL Capital Services, with the transaction valued at between 36.36 billion rupees and 48.48 billion rupees, or about $404 million to $539 million. Both sources, however, said the proposed investment would be smaller, at least at the initial stage, capped at around 20%. The final size and valuation of the deal could not be independently confirmed.
Investor reaction was swift. Shares of IIFL Capital rose as much as 5.3% to 411.30 rupees in early trade before trimming gains to close about 1.4% higher in the afternoon session. The stock gained roughly 11% last year, supported by steady earnings and optimism around India’s broader capital market growth.
The talks come at a pivotal moment for IIFL Group, which has been signaling ambitions to move beyond traditional brokerage services. Founder Nirmal Jain has said the group intends to enter newer businesses such as alternative investment funds and private credit, one of the sources said. These segments have gained traction in India as companies and high-net-worth individuals seek flexible financing and higher-yield investment options outside conventional banking channels.
Wealth management is also emerging as a strategic priority for the firm, according to the second source. This focus aligns with structural shifts in India’s financial landscape, where rising incomes, financialization of savings, and a growing population of affluent investors are driving demand for advisory-led investment products.
Industry data points to the scale of the opportunity. Assets under management in India’s wealth management industry are projected to more than double to $2.3 trillion by the 2028–2029 financial year, up from $1.1 trillion in 2023–2024, according to a Deloitte report released last year. That growth outlook has drawn increasing interest from global private equity firms looking to secure early positions in platforms with nationwide reach and diversified offerings.
A stake in IIFL Capital would add to TPG’s exposure to India’s financial services sector, where foreign investors have been actively backing brokerage firms, asset managers, and non-bank lenders. Such investments are often aimed at tapping long-term growth tied to domestic capital formation rather than short-term market cycles.
For IIFL Capital, bringing in a global investor like TPG could offer more than capital. Strategic backing, governance input, and access to international best practices could support its push into higher-margin businesses and strengthen its competitive position in a crowded market.
While the talks remain at an early stage and could still change, the discussions underline how India’s financial firms are increasingly becoming focal points for global capital as the country’s markets deepen and its investor base broadens.