Religare Enterprises Ltd has announced that it will invest about $1 billion to acquire stakes in asset management firms in order to create a global company.

Religare will acquire majority stake in Northgate Capital LLC which has offices in San Francisco and London and manages assets worth $3 billion, according to the company statement.

The acquisition is the first deal made by the company in the US. Northgate is involved in managing venture capital and private equity funds. Religare will acquire more than 60 percent in the company and the remaining stake will be held by the management.

The financial details of the deal were not disclosed but some expect the deal to value Northgate at about $200 million.

Religare is an Indian financial company owned my billionaire Malvinder Singh. The promoters also owned Ranbaxy Laboratories Ltd.

It is planning to have $60 billion to $65 billion of assets under management by the end of this year. The company has established mutual fund business in 2008 and bought Hichens, Harrison & Co. the company plans to open 100 branches in the first three years of operation.

The Chief Operating Officer of the company, Shachindra Nath informed that the company will announce further deals in the next two months.

The amount of $1 billion for acquisitions has been approved by the board of the company and will be used mostly for deals in the United States.

Jefferies & Co. and Religare Capital Markets Ltd. were the financial advisers to Religare Enterprises. Credit Suisse Securities (USA) LLC was the adviser to Northgate.