Avendus Capital acquires UK-based AMC Ocean Dial
Mumbai: Financial services firm Avendus Capital on Wednesday said it has agreed to acquire Ocean Dial Asset Management Ltd, a UK-based asset management company that currently manages approximately £450 million in Indian equities across three funds, the company said in a release.
Avendus has signed a binding agreement to acquire the company from Raju Shukla, chairman and managing director of Ocean Dial and the management team, the statement said. Financial terms of the transaction were not disclosed. The acquisition is subject to regulatory approvals in India and the UK.
“Avendus has been consistently making efforts to bolster its asset management businesses and this acquisition is one such step in the journey of growth. The acquisition will help us scale up our public equities presence,” said Ranu Vohra, co-founder, managing director and chief executive of Avendus Capital.
As the public markets are deepening, there is a switch from mutual funds to alternate investment funds, he added.
“The acquisition is synergistic, as we will work to make Ocean Dial a bigger play by bringing in investors from other geographies into the fold,” said Vohra.
Ever since US private equity firm KKR acquired a controlling stake in Avendus in 2015, the investment banking focused Avendus has been in an expansion mode, adding several new lines of business.
In September 2016, Avendus Capital hired the entire top management of Ambit Investment Advisory, including chief executive officer Andrew Holland, managing director Vaibhav Sanghavi and marketing head Bhautik Ambani.
Holland who joined Ambit in 2008 was managing its flagship hedge fund, Ambit Alpha.
The hiring of Holland and the team—which includes fund managers and research analysts— was part of Avendus’s plan to enter the hedge fund business and expand its portfolio of alternative asset management businesses.
Under Holland, the Avendus Absolute Return Fund, has recently crossed Rs1,000 crore in assets under management in four months since launch.
Last week, Avendus announced the launch of its structured credit fund.
The fund is aiming to raise a corpus of Rs250 crore, with a green shoe option of Rs250 crore. It will invest in structured credit products to holding and operating companies, preferably in sectors such as industrials, healthcare and consumer sectors.
Avendus also has a lending arm—Avendus Finance and a wealth management practice.