New York: Religare Enterprises Ltd, looking to build a multi-boutique global asset manager, said on Thursday it will buy a majority stake in Landmark Partners for up to $171.5 million in its second US deal.
Religare, which was founded by the family of Indian industrialist Malvinder Singh, said its Religare Global Asset Management unit will buy a 55% stake in Simsbury, Connecticut-based Landmark.
Landmark, established in 1989, manages 27 private equity and real estate secondary funds-of-funds with more than $8.3 billion of committed capital. Its management team will continue to run the operations and be responsible for all investment decisions.
Religare, which has a $1 billion plan to build a global asset management business, has been looking to buy controlling stakes in independent managers focused on a range of different asset classes, like equity, fixed income and private equity.
The deal comes as many asset management firms look to tap emerging markets for growth. Religare is counting on its strength in Asia to attract partners.
“Their next level of growth will come by having a deep access to emerging markets,” Religare Enterprises chief executive Shachindra Nath said. “Religare is very well poised to provide that access, given that we are well spread across Asia.”
Religare managing director Matthew Mongia, who has been hunting for deals in North America for nearly two years, said the “level of interest has never been higher than it is today.”
Religare announced its first US asset manager deal in February, when it agreed to take a controlling stake in private equity firm Northgate Capital.
Religare’s founding family controlled Ranbaxy Laboratories Ltd until 2008, when it agreed to sell its stake in the Indian drug maker to Japan’s Daiichi Sankyo Co Ltd.
Jefferies & Co and Religare Capital Markets advised Religare on the Landmark deal.