Rationale

 While arriving at the rating, ICRA has considered the consolidated financials of 360 ONE WAM Limited (360 ONE WAM). The rating are based on the consolidated view of 360 ONE WAM and its subsidiaries (referred to as 360 ONE/the Group), given the common senior management team and the strong financial and operational synergies among the Group companies. The rating factors in 360 ONE’s leading market position in the wealth management segment, supported by an experienced and stable senior management team. The rating also reflects the Group’s comfortable capitalisation and strong profitability. It maintains a leading presence in the manufacturing of Alternative Investment Funds (AIFs), with AIF assets of Rs. 50,934 crore as on December 31, 2025. Backed by its sizeable client base and distribution network, 360 ONE’s assets under management (AUM) stood at Rs. 7.11 lakh crore as on December 31, 2025. The Group also provides client funding through 360 ONE Prime, which had a loan book of Rs. 10,606 crore, largely secured by client AUM comprising listed and unlisted shares, AIF units, and property. In addition, the Group undertakes investments in its own AIFs to meet sponsor commitments. Collectively, asset management, distribution, lending, and investments in own AIFs remain one of the drivers of revenues and profitability. Profitability has been supported by healthy AUM growth, with the return on tangible equity at 20.4% (annualised) in 9M FY2026 (22.9% in FY2025). These strengths are partly offset by the high concentration in the loan book, with the top 20 exposures accounting for 45% of total loans and 75% of consolidated tangible net worth. The presence of unlisted and relatively illiquid collateral also heightens the risk of delays in recoveries under stress scenarios. In addition, the Group’s investments in AIFs (largely in its own manufactured funds) remained elevated at 58% of consolidated tangible net worth as on December 31, 2025, reflecting the need to meet sponsor commitments, mark-to-market (MTM) gains, and the closure of new funds that are yet to be sold down to clients. The increasing share of these investments relative to the AIF AUM managed by the asset management company (AMC) remains a monitorable factor.