Edelweiss Asset Management Limited (EAML) announced today that it has executed 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. The assets under management (AUM) of JPMAM stands at approximately ₹7081 crore, while the combined AUMs of both entities amount to approximately ₹8757 crore (as on Dec 31, 2015). Along with the schemes, EAML is committed to absorbing majority of employees of JPMAM ensuring business continuity as well as a platform for enhanced growth across the Edelweiss Group.
Speaking on the occasion, Rashesh Shah, Chairman & CEO, Edelweiss Group, said, “Edelweiss Group continues to remain focused on the India growth story and making inroads into the retail space by leveraging our well diversified platform. Given the complementary business advantages and the significant business that JPMAM has built, this acquisition is a natural win for both Edelweiss and JP Morgan. 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.”
The acquisition will further strengthen 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.
Nitin Jain, CEO, Global Asset & Wealth Management, Edelweiss Group, said, “What makes this transaction attractive is the complementary product suite between the schemes of both the funds thus broadening our entire asset management platform. Our commitment to clients to maintain continuity and invest in growth is unfaltering. For example, our successful integration of the Forefront Capital business and employees is testament to our capabilities. This business is now a market leader in its space having grown 5X and multiplied its client base since our acquisition.”
Vikaas M Sachdeva, CEO, Edelweiss Asset Management Limited, said, “EAML having focused on market expansion and smart product performance has seen a doubling of its AUM, making it among the fastest growing AMC this fiscal. We are sure this acquisition will give further impetus to EAML and move it to the next level of growth. Both teams will endeavour to make this a seamless transition ensuring business as usual across all stakeholders. ”
Edelweiss Group is well known for its robust risk management systems and processes, with proven leadership in the Equity and Fixed Income space. Over the years, Edelweiss has worked closely with JP Morgan across businesses and both have regard and respect for each other’s capabilities. Edelweiss is one of the leading diversified financial services group in India with businesses across Credit, Financial Markets, Asset Management, Insurance and Commodities. JPMAM, since launching the mutual funds business in India in 2007, has built a strong franchise and has enjoyed substantial growth.
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