Reliance Capital Asset Management (RCAM), a part of Anil Ambani owned Reliance Capital, signed a definitive agreement worth Rs 243 crore ($37.5 million) to acquire Goldman Sachs’ onshore asset management business in India on Wednesday.
In the all cash deal, Reliance Capital will take over all the 12 mutual fund schemes, including 10 exchange traded funds schemes, of Goldman Sachs. Managing assets of $1.19 trillion, Goldman Sachs Asset Management (GSAM) is one of the leading asset management firms in the world.
“This acquisition by RCAM is an important first step in our overall strategy to strengthen our businesses through selective inorganic growth. GSAM India has a strong bouquet of schemes and a talented team. We are confident that together they will complement and enhance RCAM’s overall offerings to our investors,” said Sam Ghosh, the executive director of Reliance Capital.
Sanjiv Shah, Co-Chief Executive Officer, GSAM India, said, “We feel this business is best positioned to achieve long-term success under the direction of an asset manager with an established onshore franchise. We are deeply encouraged by the growing investor demand and Government support for the burgeoning Indian ETF industry.”
The transaction is likely to be completed by the end of this financial year, with respect to the regulatory approvals. The acquisition deal has been approved by the board members of both the companies.
Reliance Capital Asset Management CEO Sundeep Sikka said, “The transaction will add to half a percent in our market share. We will ensure that we maintain seamless continuity for all GSAM India fund investors across all schemes.”
RCAM is one of the largest asset managers in the country in terms of assets under management (AUM) managing funds of 2,54,517 crore ($ 39.1 billion) as of September 30, 2015. This includes mutual funds, pension funds, managed accounts and offshore funds handled by the company.