J P Morgan Asset Management is the latest fund management house to exit India, with the announcement that it has sold its operation there to India-based Edelweiss Asset Management.
Details of the deal weren’t revealed. The sale marks the end of nine years in the region for JPAM, according to published reports out of India.
The sale includes JP Morgan AM’s India-based onshore mutual fund business as well as its international fund of funds. The sale is subject to regulatory approvals.
In choosing to walk away from India, JP Morgan AM has joined the ranks of other major non-Indian asset managers who’ve decided against maintaining a business there. As the Indian Express reported in October, Goldman Sachs became “the eighth high-profile foreign fund manager” to exit from India when it agreed to sell its mutual fund business there to Reliance Capital Asset Management, part of Anil Ambani-led Reliance Capital, for Rs 243 crore.
Some of the other recently-departing asset managers, the Indian Express noted, have included Deutsche Bank, Standard Chartered, Fidelity, Morgan Stanley, ING, PineBridge and Daiwa.
JPMAM has built its business up to about US$1.1bn in assets under management, as at the end of December 2015.
In a statement on Edelweiss’s website, Edelweiss chairman and chief executive Rashesh Shah said his company was prepared to make investments in the business “in terms of products, technology, distribution and a clear strategy”, as it set out to grow it.
Edelweiss said that the takeover was unlikely to affect the majority of the existing employees of JPMAM in India.
The deal significantly boosts Edelweiss’s US$4.3bn global asset management businesses, made up of mutual funds, credit alternative funds, offshore funds and equity funds. Edelweiss was founded in 1995 by several Indian entrepreneurs with roots in local capital markets.