[ad_1]
Avendus Capital, a global private equity fund backed by KKR, has decided to acquire IDFC Mutual Fund, two knowledgeable people
Avendus, which offers diversified wealth management, alternative management and credit offerings structure. was acquired by KKR in 2015. In 2017, KKR obtained new capital, as well as new investors, Gaja Capital, a growth capital provider for entrepreneurs, and Yogesh Mahansaria, an entrepreneur who founded and sold Alliance Tire Group.
It is interesting to note that KKR took a stake in HDFC MF before its highly anticipated IPO. According to sources, KKR has acquired 1.44 million shares worth more than 1.5 billion rupees from a number of distributors and financial advisors who have benefited from ############################################### 39, a pre-IPO placement in April.
Abended in an e-mail response to a request from this publication. IDFC MF declined to comment
PE firms buying equity in insurance and mutual funds are likely to speed up, experts said. At the end of last year, the Indonesian Development and Insurance Regulatory Authority approved a proposal to authorize PE funds to become promoters of unlisted insurance companies, by l & # 39; 39, intermediate special vehicles with a lock-up period of five years.
two leading riders in the race to buy IDFC MF. BlackRock, the world's largest investment management company, had recently announced its intention to part with a joint venture partner, DSP Group. It held a 40% stake in DSP BlackRock Investment Managers, among the top 10 fund companies in the country.
"BlackRock remains deeply committed to India and we look forward to having a continued positive impact on the badet management industry in Laurence Fink, President and CEO of BlackRock, said with irony that the company could not be contacted for this report.
With a total badets of about 700 billion rupees, IDFC MF is currently ranked 12th in terms of badets it manages, shows data of the Mutual Fund Association in India.According to previous reports, the badet management company was considering a valuation of Rs 40-45 billion for the fund house.
IDFC MF was primarily a home-grown debt fund, but has added equity in recent years, said experts. "Although she has a reasonably strong management team, her distribution is weak," said a MF official
Historically, Indian badet management transactions have occurred between five and six percent of badets under management. The arrival at reasonable valuations could be tricky, given the exponential growth of funds under management over the past two years. Experts say MF badets have grown at a compound annual rate of 25-30% over the last three years. The profits of large fund companies are expected to grow rapidly as badets increase and fixed costs remain the same
"Current management (IDFC) will ideally want the buyer to be a new player or a new player. In this way, the existing AMC team remains intact and integration issues are taken into account, "said one person under cover of anonymity.
MFs accumulated record badets last year, with an average monthly influx of Rs 40-60 billion through systematic investment plans. The sector has doubled its badets over the past three years, with total outstanding of Rs 22 trillion at the end of May.
[ad_2]
Source link
