JPMorgan to sell India fund management arm that targets HNWI
JPMorgan is selling its Indian fund management business to Apollo Global Management (Apollo), according to a report in PERE, an online publication on alternative assets.
Apollo, a US private equity firm, will take control of JPMorgan India Property Fund and JPMorgan India Property Fund II, which have assets of US$360 million and $155 million, respectively, the report says, citing unnamed sources. The funds target institutional investors and high net-worth individuals.
“The transaction, which involves a nominal consideration by Apollo towards the acquisition, will officially close this summer,” sources said.
No reasons are provided for the move. However, some sources suggest that it could be because JPMorgan failed to “scale up real estate investments in India the way they wanted”.
JP Morgan Asset Management is preparing to exit all four remaining investments made from its first India-focused realty fund including Bengaluru-based Nitesh Estates, Singapore-headquartered Assetz Property Group, Mumbai-based Vaswani Group and Pune-based Kolte-Patil Developers Ltd.
In 2006, JPMorgan Asset Management had raised $360 million for its maiden real estate fund in India called JPMorgan India Property Fund from institutional investors and high net-worth individuals (HNIs) across global markets. This followed the second vehicle worth $155 million.
JP Morgan invested in the country till early 2016.
The US-based investment bank had $1.68 trillion of assets under management as at March 31, 2018.