Nuvama Wealth Management Limited · NSE:NUVAMA
Nuvama Wealth Management — Q1 FY25 Earnings Presentation
57 slides from Nuvama Wealth Management's earnings presentation, Aug 8, 2024
Slide 1: Exchange filing cover letter
NWML/SEC/2025/61 August 8, 2024 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Exchange Plaza, 5 Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai - 400 0
Slide 2: Investor Presentation Q1 FY25
NUVAMA Investor Presentation Q1 FY25 1
Slide 3: Contents
Contents 1 2 3 4 About Us Industry Performance Strategy Landscape Overview 2
Slide 4: Contents Summary: About Us
Contents Summary ▪ Strong institutional ownership: PAG (promoter of company), 1. ABOUT US one of the largest Asia-based alternative investment managers ▪ Integrated wealth management platform with exhaustive 2. INDUSTRY suite of offerings LANDSCAPE ▪ Only established player with proven execution acr
Slide 5: About Nuvama
ABOUT Nuvama Serving Client-first UHNI & Family Offices foundation HNI & Affluent Individuals Corporates & Institutions Well Scaled Wide Presence Client Assets of ~ US $ 46.6 Bn 3,200+ employees across 90+ offices 1,250+ RMs Strong Governance Unique Proposition Experienced board and Multi Client Seg
Slide 6: Majority owned by PAG, a leading investment firm
Majority owned by PAG (promoter of company) a LEADING INVESTMENT FIRM One of the largest Asia-based alternative investment managers with ~USD 55 Bn of assets under management in private equity, real assets, credit & markets Assets Under Management 1 Offices In Asia 2 Total Employees 1 ~USD 55 Bn 8 7
Slide 7: Comprehensive wealth management platform with exhaustive suite of offerings
COMPREHENSIVE WEALTH MANAGEMENT PLATFORM with exhaustive suite of offerings Our vision is to provide our clients with comprehensive and tailored wealth management solutions and advice We Serve We Provide Access To 1. Products 2. Advisory 3. Capital Markets UHNI and Family Offices Third Party Proprie
Slide 8: Evolved into an integrated wealth management platform
Evolved from individual businesses into an INTEGRATED WEALTH MANAGEMENT PLATFORM 4. Listed, Strong Governance Company to 3. Transitioned Smoothly, Deliver Long-term Value Operating with Independent with PAG as the Promoter 2. Global Partnership Board, Governance, Operations Validating Platform and M
Slide 9: Well-positioned in this evolving wealth space
WELL-POSITIONED in this evolving wealth space Only scaled player in both client Culture Client segments with “Full Platform” capabilities Established UHNI and Wealth Managers High Family Boutique Offices Private Banks High Orientation RM / Client Networth & Domestic Banks Affluent Individuals Fintec
Slide 10: Established wealth manager covering majority of wealth client segments
As an ESTABLISHED WEALTH MANAGER, we cover client segments constituting majority of wealth ~35K 70-75% UHNI Households of total financial ~30 lacs HNI & AFFLUENT wealth Households MASS MARKET RETAIL 9
Slide 11: A high growth company with diversified earnings
A HIGH GROWTH COMPANY with diversified and superior quality of earnings Revenue All figures are in US $ Mn % are YoY +31% 247 +19% 189 +32% 142 Wealth & Asset 158 122 Management leading the 120 90 growth 58 57 47 40 40 39 20 20 19 8 8 - 2 FY21 FY22 FY23 FY24 1 1 Wealth Management Asset Management As
Slide 12: Unique business model enabling seamless client solutioning
UNIQUE BUSINESS MODEL, enabling value and seamless client solutioning across ecosystem Small & Medium UHNI Business Owners Family Offices & Business Owners HNI Advisory & Unique Research Products Referrals & Client Distribution Insights Corporates Affluent & Institutions Individuals ONE NUVAMA 11
Slide 13: Focused execution delivering strong and sustainable outcomes
Focused execution delivering STRONG AND SUSTAINABLE OUTCOMES All figures are in US $ Mn CLIENT ASSETS REVENUES 41,432 247 27,674 189 25,508 CAGR 158 CAGR 18,999 30 % 27 % 120 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 OPERATING PAT COST TO INCOME 71 73% 70% 69% 44 CAGR 62% 24 35 44 % 11 % FY21 FY22 FY2
Slide 14: Contents Summary: Industry Landscape
Contents Summary ▪ India's financial services sector has secular tailwinds 1. ABOUT US o Financial wealth would continue to grow rapidly o Investment asset class will grow even faster 2. INDUSTRY LANDSCAPE o Rising formal penetration will multiply the opportunity ▪ Making India’s wealth industry a s
Slide 15: Wealth management in India is nascent with huge opportunity
In India WEALTH management is at a nascent stage and presents a HUGE OPPORTUNITY 1 2 3 GDP Growth Forecast Total Wealth to GDP Ratio (~) Share of Financial Wealth % (~) Globally India Matured Markets India Matured Markets India ~3% 6-7% 6.5x 4.5x 70% 25% 4 5 Professionally Managed Financial India Ma
Slide 16: Investment asset class growing fast driven by value migration
Investment asset class is growing fast driven by VALUE MIGRATION and has a LONG RUNWAY AUM CAGR AUM / Premium to GDP Asset Class Last 10Y India US / Global Mutual Funds 21% 16% 116% AIF 68% 1% 13% Insurance 14% 3% 11% India to become the 4th largest private wealth market globally by 2028 15
Slide 17: Making this a structural and scalable play
Making this a STRUCTURAL and SCALABLE play ▪ Enhanced regulatory focus Consolidation ▪ Technology disruptions ▪ Increasing product complexity Greater ▪ Demographics and rising affluence Growth ▪ Critical to client Attractive ▪ Low capital requirements - High RoE Economics ▪ Concentration of wealth -
Slide 18: Contents Summary: Performance Overview
Contents Summary ▪ Revenues: Q1 FY25 stood at US $ 80 Mn, grew by 60% YoY 1. ABOUT US ▪ Operating PAT: Q1 FY25 stood at US $ 26 Mn, grew by 133% YoY 2. INDUSTRY ▪ Wealth and Asset Management businesses continues to LANDSCAPE witness secular growth, Q1 FY25 revenues grew by 18% YoY. Capital Markets b
Slide 19: Consolidated Performance Q1 FY25
Consolidated Performance Q1 FY25 18
Slide 20: Business Summary: Q1 FY25
Business Summary: Q1 FY25 MOST COMPREHENSIVE WIDE AND GROWING WELL-SCALED SERVING PRODUCT SUITE SALES COVERAGE PLATFORM Wealth Management Investment Solutions 3,850+ 1,250+ US $ 32,829 Mn Managed Products Client Assets Advisory Ultra High Networth Families Wealth RMs Wealth Management Exchange Trade
Slide 21: Business Summary: Q1 FY25
Business Summary: Q1 FY25 All figures are in US $ Mn STRONG FINANCIAL PERFORMANCE DELIVERING QUALITY OUTCOMES REVENUES COST TO INCOME 80 70% YoY 56% YoY 50 60 % 14 % Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 OPERATING PAT RETURN ON EQUITY 29.4% 26 YoY YoY 11 133 % 16.5% 13 % Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 20
Slide 22: Key Highlights: Q1 FY25
Key Highlights: Q1 FY25 ▪ Client Assets: Q1 FY25 stood at US $ 46,591 Mn, grew by 50% YoY o Nuvama Wealth client assets stood at US $ 10,520 Mn, grew by 45% YoY. Growth in net flows led by MPIS assets CLIENT ASSETS o Nuvama Private client assets stood at US $ 22,309 Mn, grew by 31% YoY. ARR assets g
Slide 23: Key Highlights: Q1 FY25 (cost and profitability)
Key Highlights: Q1 FY25 ▪ Total Cost: Q1 FY25 stood at US $ 45 Mn, grew by 28% YoY o Staff costs: US $ 33 Mn in Q1, grew by 34% YoY COST • Added 350+ RMs in last 12 months, aligned with the growth strategy to scale and deepen presence • Increase in variable cost provisions in line with revenue growt
Slide 24: Consolidated Performance: Q1 FY25
Consolidated Performance: Q1 FY25 Particulars – All figures are in US $ in Mn Q4 FY24 Q1 FY25 Q1 FY24 YoY FY23 FY24 YoY Total Revenue 1 71 80 50 60% 189 247 31% Wealth Management 40 38 33 18% 122 142 17% Asset Management 2 2 2 23% 2 8 8 34% 2 Capital Markets 30 40 16 153% 59 96 64% Total Costs 43 45
Slide 25: Capital Management Strategy
Capital Management Strategy: Focused on driving growth & creating long-term shareholder value CAPITAL MANAGEMENT PRINCIPLES IMPROVING SHAREHOLDER RETURNS DIVIDEND 1. Disciplined capital management Return on Equity (RoE) Board declared to maximize profitability and RoE 23.6% dividend of 2. Investment
Slide 26: Segmental Summary: Q1 FY25
Segmental Summary: Q1 FY25 Wealth Management Asset Management Capital Markets 25
Slide 27: Nuvama Wealth: Introduction
Nuvama Wealth: Introduction One of the leading wealth managers in Affluent and HNI client segments Well scaled Wide presence across India US $ 10,520 Mn of client assets 1,150+ RMs and ~7,000 Active External Wealth Managers (EWM) ~1.2 million clients. ~20% serviced by RMs & External Wealth Managers
Slide 28: Nuvama Wealth: Value Proposition
Nuvama Wealth: Value Proposition 01 Multi-Product and Open Architecture Wide bouquet of investment solutions across asset classes and access to seasoned products Unbiased Solutions 02 Offering unbiased and customized solutions as per client’s needs, portfolio and risk appetite Hybrid Ecosystem 03 Co
Slide 29: Nuvama Wealth: Journey over years
Nuvama Wealth: Journey over years All figures are in US $ Mn CLIENT ASSETS REVENUES 9,333 80 69 6,094 6,296 49 CAGR CAGR 33 % 35 % 3,954 33 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 OPERATING PBT COST TO INCOME 28 90% 80% 21 69% 65% CAGR 10 106 % 25 % 3 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 28
Slide 30: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Revenue (US $ Mn and YoY) Revenue Composition (%) Profit Before Tax (US $ Mn and YoY) By Solutions By Channel +23% MPIS NII Relationship Manager Brokerage Others External Wealth Manager 23 +13% 18 40% 8 50% 7 74% 72% 27% 26% 22% 14% 26% 28% 9% 11% Q1 FY24 Q1 FY25 Q
Slide 31: The immense untapped opportunity
THE IMMENSE UNTAPPED OPPORTUNITY Nuvama Wealth: Invested to grow. Increased RMs by 350+ or 40% and onboarded 2,000+ EWMs in last 12 months deepening our presence to further penetrate in this under serviced Affluent & HNI Households prefer Rising affluence Democratisation of Capital Markets generatin
Slide 32: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Closing Client Assets (US $ Mn and YoY) Client Assets Composition (US $ Mn) MPIS Net New Money (US $ Mn and YoY) +45% MPIS Loan Broking Others 10,520 198 -16% 2,241 2,989 +33% 166 7,273 329 367 4,558 7,062 107 140 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 1.0
Slide 33: Nuvama Private: Introduction
Nuvama Private : Introduction Amongst top 2 independent private wealth players Well scaled High-quality team US $ 22,309 Mn of client assets 118 relationship managers 3,850+ families Comprehensive Solutions High customer satisfaction Investments | Lending | Estate Planning Net Promoter Score of 65 F
Slide 34: Nuvama Private: Value Proposition
Nuvama Private : Value Proposition Preserve and sustainably grow clients’ wealth through bespoke solutions across suite of offerings CLIENT PROFILE (A) Bespoke Solution (B) Investment Advisory (C) Managed Accounts Suite Family Offices Facilitate opportunities in VC, IB, Investment Policy Statement (
Slide 35: Nuvama Private: Journey over years
Nuvama Private : Journey over years All figures are in US $ Mn CLIENT ASSETS REVENUES 62 20,348 53 14,316 15,496 41 CAGR CAGR 11,805 20 % 25 35 % FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 OPERATING PBT COST TO INCOME 22 85% 19 65% 64% 64% * 14 CAGR 4 79 % 21 % FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 *
Slide 36: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Revenue (US $ Mn and YoY) Revenue Composition (%) Profit Before Tax (US $ Mn And YoY) From ARR Earning Assets +11% From Transactional Assets 16 7% 14 5 5 64% 63% 36% 37% Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 1. Revenues grew by 11% YoY, absorbing impact
Slide 37: The immense opportunity: Nuvama Private
THE IMMENSE OPPORTUNITY Nuvama Private: Invested to grow. Increased RMs by ~15%, improved penetration at existing cities and added 4 new cities beyond tier 1 in last 12 Booming tech months to serve UHNI client segment ecosystem, Growth of the Next Monetization of promoter stakes, Accretion of Wealth
Slide 38: Leverage onshore capabilities to establish full stack offshore wealth platform
VALUE PROPOSITION Nuvama Private: Leverage onshore capabilities to establish a full stack offshore wealth platform India to Offshore 1. Serve large Indian families looking to create an offshore hub or those who already have an addressable offshore wealth pool India to Offshore 2. Serve existing UHNI
Slide 39: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Closing Client Assets (US $ Mn and YoY) Client Assets Composition (US $ Mn) 1 Net New Money (US $ Mn and YoY) 1 ARR Earning Assets +31% Transactional Assets +45% 22,309 477 3,129 4,631 +48% 17,043 330 10,988 14,750 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 1
Slide 40: Nuvama Asset Management: Introduction
Nuvama Asset Management: Introduction Focused and high-performing alternatives asset management business Scaling with Speed Active Strategies AUM of US $ 921 Mn Private Markets + Public Markets + Commercial Real Estate 81% of this being fee paying High-Quality Investment Team Strong Distribution 20+
Slide 41: Nuvama Asset Management: Value Proposition
Nuvama Asset Management: Value Proposition 01 Differentiated Solutions Addressing client needs by offering unique products, powered by deep insights from wealth clients Proven Fund Management Capabilities 02 Established track record across public markets and private products. Delivering top quartile
Slide 42: Nuvama Asset Management: Journey over years
Nuvama Asset Management: Journey over years All figures are in US $ Mn ASSETS UNDER MANAGEMENT REVENUES EX-CARRY 834 6 668 4 462 CAGR CAGR 34 % 2 59 % FY22 FY23 FY24 FY22 FY23 FY24 FEE PAYING AUM NO OF STRATEGIES 658 7 469 359 CAGR 35 % 2 3 FY22 FY23 FY24 FY22 FY23 FY24 41
Slide 43: Nuvama Asset Management: Performance Metrics
Nuvama Asset Management: Performance Metrics Revenue ex-carry (US $ Mn and YoY) Client Assets (US $ Mn and YoY) Fee Paying Client Assets (US $ Mn and YoY) +30% +44% +23% 921 747 2 1 708 518 Q1 FY24 Q1 FY25 Yield on Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 average fee-paying 1.01% 0.89% assets 1. Management f
Slide 44: Nuvama Capital Markets: Journey over years
Nuvama Capital Markets: Journey over years All figures are in US $ Mn CLIENT ASSETS – ASSET SERVICES REVENUES – ASSET SERVICES 10,917 39 CAGR CAGR 25 % 5,213 20 50 % 4,636 20 19 3,240 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 REVENUES – IE & IB OPERATING PBT CAGR 57 45 47 ASSET SERVICES 33 % 40 40 CAG
Slide 45: Nuvama Capital Markets: Performance Metrics
Nuvama Capital Markets: Performance Metrics Revenue (US $ Mn and YoY) Revenue Composition (%) Profit Before Tax (US $ Cr and YoY) +153% Asset Services Institutional Equities and Investment Banking 494% 40 23 34% 40% 16 66% 60% 4 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 1. Capital Markets reve
Slide 46: Won accolades across credible platforms
Won accolades across credible platforms Select Awards and Recognitions Q1 FY25 Great Indian BSFI Outstanding Best Private Bank – Search Engine Best - BSFI Achievement by CEO India Marketing of the of a Private Bank – Year South Asia 4th Edition of BFSI Digital BW - Merit Awards 2024 Global Private B
Slide 47: Contents Summary: Strategy
Contents Summary 1. ABOUT US ▪ Necessary fundamentals in place ▪ Adequately capitalized to achieve future goals 2. INDUSTRY LANDSCAPE ▪ Well defined trajectory for each segment 3. PERFORMANCE OVERVIEW 4. STRATEGY 46
Slide 48: Our strategic advantage
Our STRATEGIC ADVANTAGE Strong promoters with experienced management team PAG, promoter of the company, is a leading investment firm, with AUM of ~USD 55 billion Management team with visionary leadership having experienced multiple business cycles Integrated and differentiated platform Comprehensive
Slide 49: Long-term objectives
LONG-TERM objectives Wealth and Asset Operating leverage to deliver Be client-first in Management to be key drivers significant improvement in cost everything we do and would constitute 75 - 80% to income ratio of the earnings 48
Slide 50: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Building entire Leverage tech to Continue journey Expand to NRI client ecosystem with optimize cost-to- from product to segment and People at center. serve, improve portfolio solutions deepen existing Double RM capacity
Slide 51: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Build full suite of Continue to scale public Expand alternatives market strategies Distribution Significantly In 5 years grow Scale Asset AUM to 6-8x Management On-going On-going Nuvama Private Equity Long Only Private V
Slide 52: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Asset Services International Institutional Domestic Institutional Enterprise (Technology Client Group Client Group (AIF, PMS) and Operations) In 5 years grow Grow assets clients assets to under Grow clients and expand Gr
Slide 53: ESG initiatives: Updates until Q1 FY25
We continue to make progress through ESG initiatives: Updates until Q1 FY25 Environment Social Governance o US GBC Gold certified head office for o ISO 27001 for information security o Published first BRSR report for FY24 interior designing management system o Aligning our approach towards ESG and o
Slide 54: Annexures
INalatsy.lisys “a nuvama
Slide 55: Annexure 1: Our Board
Annexure 1: Our Board Experienced and Independent composition with good mix of business and functional skills Birendra Kumar Ashish Kehair Shiv Sehgal Nikhil Srivastava Anthony Miller Chairperson & Independent Managing Director and Executive Director Non-Executive Nominee Non-Executive Nominee Direc
Slide 56: Safe harbour
Safe harbour DISCLAIMER : This presentation and the discussion may contain certain words or phrases that are forward-looking statements, which are tentative, based on current expectations of the management of Nuvama Wealth Management Limited or any of its subsidiaries, associate companies and joint
Slide 57: Thank You
Thank You For more details refer data book published on our website. Click here to access. # Data Book Contents 1 Consolidated Performance 2 Segmental Performance - Wealth Management a) Nuvama Wealth b) Nuvama Private 3 Segmental Performance - Nuvama Asset Management 4 Segmental Performance - Nuvama
Nuvama Wealth Management — Q1 FY25 Earnings Presentation on 6ix