Heard on the Street: Fund house may offer minority stake to US AMC

A newly-established bank-promoted fund house is learnt to be in advanced stages of negotiations to sell a minority stake to a US based asset management company, specialising in exchange traded funds ( ETFs).

According to industry sources, deal negotiations, on behalf of the private bank, are being spearheaded by its CEO. Both the concerned parties have adopted a ‘guarded’ stance and have not appointed merchant bankers to take them through the deal.

The Indian fund house is keen to sell about 26-49% stake in the fund house and is expecting a valuation of up to 4.5% of its total AUM, industry sources said.

Apart from launching its marque products, the Indian fund house expects its US partner to bring in overseas funds for asset management and advisory business. The partnership will help the US-based asset management company to get an entry into the Indian market.