KKR-Controlled Avendus Capital Surprises As Frontrunner To Buy IDFC Mutual Fund US private equity giant KKR controlled Avendus Capital comes out as surprise frontrunner to buy IDFC mutual fund. A rush of funds and increasing interest of public in MF have attracted worldwide investors to India’s asset management industry worth 23 crore lakhs Rupees. Avendus and KKR are in negotiation with IDFC and have made an offer of 3000-4000 crore Rupees. Reliance Nippon Asset Management and Indusind bank have withdrawn. Efforts are on and the deal may probably close by next month, people with direct knowledge told The Economics Times. It would be the biggest takeover of India’s 42 member strong mutual fund industry and entry of global private equity investor if the deal is successful. Reliance Nippon withdrew because merging schemes does not make sense and talks with Indusind failed due to offer of share swap instead of cash. IDFC Mutual Fund’s Asset Under Management (AUM) with a value of 69000 crore Rupees (20000 crore Rupees in equities, and the balance in fixed income) ranks No. 12 in the Indian MF industry. Industry analysts say that IDFC AMC has established schemes with strong track record, distributor relationship and fund management team. Amit Kumar, partner and Director, BCG India, told that anyone buying an existing AMC is at advantage as a strong growth is expected in the next five years with investors moving from physical to financial and capital assets. Two years ago KKR bought Avendus, which was established by Gaurav Deepak, Ranu Vohra and Kaushal Aggarwal, in 1999. Avendus hired Andrew Holland, chief executive at Ambit capital, to launch hedge fund, in September 2016. Last year, the company hired Sandeep Thapliyal, former head of commercial and investment banking, RBL bank, to establish a structured credit fund. KKR, the New York-headquartered firm, has arranged 4 billion Dollars through Private equity and 5 billion Dollars through Credit businesses, and has been investing in India since 2006. IDFC Mutual Fund headed by Anup Bhaskar from February 2016 and Vishal Kapoor as CEO from May 2017 is a profit making company with profit after tax of 110 crore Rupees in 2016 and 97 crore Rupees in March 2017. The post KKR-Controlled Avendus Capital Surprises As Frontrunner To Buy IDFC Mutual Fund appeared first on OWLT Market.

US private equity giant KKR controlled Avendus Capital comes out as surprise frontrunner to buy IDFC mutual fund. A rush of funds and increasing interest of public in MF have attracted worldwide investors to India’s asset management industry worth 23 crore lakhs Rupees.

Avendus and KKR are in negotiation with IDFC and have made an offer of 3000-4000 crore Rupees. Reliance Nippon Asset Management and Indusind bank have withdrawn.

Efforts are on and the deal may probably close by next month, people with direct knowledge told The Economics Times.

It would be the biggest takeover of India’s 42 member strong mutual fund industry and entry of global private equity investor if the deal is successful.

Reliance Nippon withdrew because merging schemes does not make sense and talks with Indusind failed due to offer of share swap instead of cash.

IDFC Mutual Fund’s Asset Under Management (AUM) with a value of 69000 crore Rupees (20000 crore Rupees in equities, and the balance in fixed income) ranks No. 12 in the Indian MF industry.

Industry analysts say that IDFC AMC has established schemes with strong track record, distributor relationship and fund management team.

Amit Kumar, partner and Director, BCG India, told that anyone buying an existing AMC is at advantage as a strong growth is expected in the next five years with investors moving from physical to financial and capital assets.

Two years ago KKR bought Avendus, which was established by Gaurav Deepak, Ranu Vohra and Kaushal Aggarwal, in 1999. Avendus hired Andrew Holland, chief executive at Ambit capital, to launch hedge fund, in September 2016. Last year, the company hired Sandeep Thapliyal, former head of commercial and investment banking, RBL bank, to establish a structured credit fund.

KKR, the New York-headquartered firm, has arranged 4 billion Dollars through Private equity and 5 billion Dollars through Credit businesses, and has been investing in India since 2006.

IDFC Mutual Fund headed by Anup Bhaskar from February 2016 and Vishal Kapoor as CEO from May 2017 is a profit making company with profit after tax of 110 crore Rupees in 2016 and 97 crore Rupees in March 2017.

The post KKR-Controlled Avendus Capital Surprises As Frontrunner To Buy IDFC Mutual Fund appeared first on OWLT Market.

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