Deutsche Bank Group announced that it has entered into an agreement to sell its India asset management business to Pramerica Asset Managers Pvt. Ltd., subject to customary closing conditions and regulatory approvals.
Pramerica Asset Managers is the asset management business in India of Pramerica Investment Management (PIM), whose multi-manager asset management businesses collectively rank among the top 10 institutional money managers in the world, according to Pensions & Investments. The sale is a continuation of Deutsche Asset & Wealth Management’s global initiative to further focus its business on developing and strengthening its regional centres of investment excellence, with the ultimate aim of delivering consistently superior performance to clients across all asset classes and investment strategies.
Ravi Raju, Head of Deutsche Asset & Wealth Management, Asia Pacific, said: "Deutsche Bank Group’s asset management business was established in 2003, and is now the second largest foreign asset manager in India. We have built a strong brand with a well respected investment and coverage team. This solid foundation will be passed on to Pramerica, which is an internationally respected asset manager with broad product capabilities and expertise. We are confident that with Pramerica’s global footprint and track record of integrating and working with local partners in key markets, the business will continue to perform well following the integration. We are committed to working with Pramerica to ensure a smooth transition for clients, staff and other stakeholders.”
Ravneet Gill, Chief Executive Officer, Deutsche Bank Group India said: “The divestment of our asset management business is in line with our strategy of focusing on our core businesses where we can achieve a leadership position. Deutsche Bank Group’s overall India franchise has posted strong financial results, and we remain absolutely committed to further investment and development of our business here given that India is strategically important to the bank’s global growth aspirations.”
Glen Baptist, Chief Executive Officer of Pramerica International Investments, said, “The strong track record of Deutsche Bank Group’s asset management business in India, its talented leadership team, and deep relationships with institutional clients and distribution partners, perfectly complement the sales, investment and product capabilities of our existing business. When the transaction is completed, we will have the scale and platform necessary to make our investment strategies available to clients across India and put us within sight of the top 10 asset management businesses. We are confident that the combined business, and our new joint venture with DHFL, will enable us to achieve our strategic priority of building an industry-leading India asset management business.”
Pramerica’s new JV with DHFL, which will benefit from DHFL’s 30 years of financial services experience in India when the transaction is completed, will be renamed DHFL Pramerica Asset Managers upon regulatory approval.
Deutsche Asset Management established its business in India in 2003 and today has INR 20,720 crore (EUR 2.9 billion) average assets under management (as of quarter Apr-Jun 2015), making it the second-largest 100% foreign-owned asset manager in India.
Over the last decade, the firm has built a strong investment performance track record. Its product portfolio spans debt and equity schemes; domestic and offshore funds.
Deutsche Asset Management (India) is the Mutual Fund business of Deutsche Asset & Wealth Management in India.