The acquisition is expected to boost Edelweiss Group's ₹31,000-crore global asset management businesses, credit alternative funds, offshore funds and equity funds.
Edelweiss Asset Management Limited (EAML) has signed an agreement to acquire the onshore fund schemes managed by JP Morgan Asset Management India Private Limited (JPMAM), including its India based onshore mutual fund business and the international fund of funds, subject to regulatory approvals. JPMAM managed assets worth ₹7,081 crore and the combined entity would manage assets worth ₹8,757 crore (as on December 31, 2015), a press release said.
EAML release also said the company is committed to absorbing majority of employees of JPMAM, ensuring business continuity as well as a platform for enhanced growth across the Edelweiss Group. The acquisition is expected to boost Edelweiss Group's ₹31,000-crore global asset management businesses, which include the group's existing mutual fund business, credit alternative funds, offshore funds and equity funds. The global asset management business spans multiple asset classes, client segments and geographies.
"Edelweiss Group continues to remain focused on the India growth story and making inroads into the retail space by leveraging our well diversified platform. There will be planned investments into the business in terms of products, technology, distribution and a clear strategy to compound growth. I welcome all of JPMAM's employees, clients and partners to the Edelweiss family," said Rashesh Shah, Chairman & CEO, Edelweiss Group.
"One of the reasons we selected Edelweiss as the preferred acquirer was its commitment to continue to drive the best outcome for our clients. Another major consideration was their strong intent to retain the vast majority of our employees, including our investment team," said Nandkumar Surti, Managing Director and Chief Executive Officer of J.P. Morgan Asset Management India Private Limited. 'Both JPMAM and Edelweiss are committed to ensure a smooth and seamless transition for our clients, distributors and employees.'