Validus Wealth, a wealth management firm, on Thursday said it has sold a substantial majority stake to LGT, a private banking and asset management group owned by the princely family of Liechtenstein.

The value of the transaction and the size of stake purchased by LGT were not disclosed.

Validus was earlier known as WGC Wealth when it was promoted by Wadhawan Global Capital, which is also the promoter of troubled Dewan Housing Finance Corp. Ltd (DHFL).

Validus was recently bought out by its employees, resulting in its new avatar. Post the deal, the remaining stake in Validus will be held by its current management team.

The company, which caters to high net-worth individuals in India, began operations in September 2018. It offers investments, lending, succession planning and protection services for investors with a presence in cities such as Mumbai, Delhi, Bengaluru, Chennai and Pune.

“Through this transaction, Validus Wealth will significantly strengthen its platform for serving high net-worth and ultra high-worth families in India, and LGT will expand its international presence and foray into the thriving Indian wealth management market," Validus said in a statement.

The latest deal follows similar divestments by Wadhawan Global Capital and DHFL, which have been hit by the liquidity crunch that has gripped India’s non-bank lenders since last September.

The group has sold various businesses including affordable home finance arm Aadhar Housing Finance to private equity firm Blackstone, and the education financing arm Avanse Financial Services to Warburg Pincus.

LGT’s acquisition of Validus is expected to conclude within the next two-three months subject to regulatory approvals. Validus will continue to be led by its current founder and chief executive Atul Singh.

“Our accelerated growth is a clear reflection of the opportunities in India for home-grown wealth management firms such as ours to leverage. LGT’s comprehensive capabilities will further propel our ambitious agenda and contribute to our efforts in enhancing robust offerings," said Atul Singh.

With LGT’s parentage, the wealth manager plans to develop a full-service private client platform, offering investment advisory, portfolio management, research, and wealth planning services. In the coming years, the range of services is likely to include financing, the statement said.