Foreign AMCs exit India business
Since Dec. 2013, four houses have left
By : DC Correspondent
Update: 2015-08-08 01:01 GMT
Mumbai: Pramerica Asset Managers Pvt Ltd, the Indian subsidiary of US based Prudential Financial is set to acquire Deutsche Bank’s asset management business in India, a money manager with 10 times the asset size of Pramerica. While Pramerica has total AuM of Rs 2,125 crore, Deutsche AMC has an AuM of Rs 20,720 crore as as on June 2015.
The combined business will enable Pramerica AMC to expand its investment management expertise, distribution platform and product portfolio significantly in India. “When the transaction is completed, we will have the scale and platform necessary to make our investment strategies available to clients across India and put us within sight of the top 10 asset managers in the country. We are confident that the combined business, and our new joint venture with DHFL, will enable us to achieve our strategic priority of building an industry-leading Indian asset management business,” said Glen Baptist, CEO of Pramerica International Investments.
The transaction is subject to approval by the Sebi and CCI. Deutsche AMC is the fourth foreign owned fund house to exit the Indian asset management business since December 2013. “Those who are not that optimistic about the Indian asset management business are quitting the business. There are several fund houses, which have failed to achieve certain threshold and grow their business substantially. This is not the first time that foreign fund houses have exited,” said Dhirendra Kumar, CEO, Value Research.