Edelweiss Financial Services has agreed to acquire Ambit Alpha Fund, a category III alternate investment fund with assets under management of more than Rs 1,100 crore, the company said on Thursday.
The deal is subject to regulatory approval which according to the sources could take up to two months.
“We are seeing financial savings of Indian investors shifting from hard assets such as gold and real estate to financial instruments. This movement presents exciting opportunities in the rapidly growing asset management space, Rashesh Shah, chairman & CEO of Edelweiss Group, said.
“Ambit Alpha Fund is one of the market leading AIFs in the country and allows us to consolidate our market position in this business,” Shah said.
Both Ambit and Edelweiss refused to disclose the deal size.
This is the second asset management acquisition of Edelweiss Group in 2016. In March, Edelweiss Asset Management announced acquisition of JP Morgan’s mutual fund business in India, which has assets of over Rs 7,000 crore, making the US fund house the 11th foreign major to exit the Rs 13 lakh crore industry in the last eight years.
Company officials said the acquisition will further strengthen its Rs 35,000-crore global assets management (GAM) business, which includes the group’s existing mutual funds, alternative assets management, multi-strategy funds and asset reconstruction. This business has seen more than 40% growth over the last year.