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Reliance Capital to acquire Indian asset management business from Goldman Sachs

BBR Staff Writer Published 22 October 2015

Reliance Capital Asset Management (RCAM) has agreed to acquire Goldman Sachs's onshore asset management in India for $37.5m.

Anil Ambani

The deal includes the acquisition of all onshore mutual fund schemes, including exchange traded funds, of Goldman Sachs Asset Management (GSAM) India.

GSAM India currently manages 12 mutual fund schemes, including 10 exchange traded fund (ETF) schemes, and is said to be the largest ETF provider in India.

As of 30 September 2015, GSAM India has a total assets under management (AUM) of $ 1.1bn which includes $334m of AUM in the Central Public Sector Enterprises ETF for which GSAM India is currently the exclusive fund manager.

RCAM CEO Sundeep Sikka said: "The transaction will add over half a percent in our market share. We will ensure that we maintain seamless continuity for all GSAM India fund investors across all schemes.

"Going forward we would be willing to consider more such acquisitions that add to our strength and complement our portfolio."

The acquisition, which already received approval from RCAM and GSAM India boards, is yet to receive necessary regulatory approvals. It is expected to be completed by the end of this fiscal year.

RCAM will retain all of GSAM India's employees in the ETF business.

Goldman Sachs India chairman Sonjoy Chatterjee said: "GSAM will continue to deliver global asset management services to Indian clients and will remain a significant investor in Indian securities through regional and global managed GSAM funds.

In the meantime, we remain committed to growing our investment banking and securities franchise in India and we continue to feel extremely positive about India as an important and growing market for Goldman Sachs overall."

Image: Reliance Capital chairman Anil Ambani. Photo: courtesy of Sourav Mishra / Wikipedia.