IDFC to sell 25% in MF arm to US asset manager

IDFC to sell 25% in MF arm to US asset manager

Mumbai: Infrastructure financing major IDFC Ltd has agreed to sell a 25% stake in IDFC Asset Management Co Ltd to US based Natixis Global Asset Management, LP or NGAM , a US based privately owned nvestment manager.

IDFC Asset management is the 10th largest asset manager in India managing over Rs18,300 crore. In May, Mint had reported that IDFC AMC is looking for a foreign ally. Officials from both firms are meeting Thursday in Mumbai to finalise the deal, according to two people familiar with the development.

IDFC Asset Management wants a foreign partner that will help it tap a share of the capital that flows into the Indian market, boosting its fee income and improving its margins. “Domestic mutual funds do not have the international distribution, brand or relationships to intermediate international capital flows into the Indian markets from an investment management perspective," Vikram Limaye, executive director, IDFC had told Mint.

NGAM primarily provides its services to institutions and individuals. It manages equity and fixed portfolios for the firm’s clients. The firm invests in the public equity, fixed income, and alternative investments markets across the globe. It invests in growth and value stocks of large-cap, mid-cap, and small-cap companies. The firm typically invests in hedge funds and real estate to make its alternate investments. It employs long short equity, long short fixed income, convertible arbitrage, and fixed income arbitrage strategies to create the firm’s hedge funds.