Pramerica Financial and Dewan Housing Finance Corporation (DHFL) have signed a binding term sheet for Pramerica to acquire DHFL’s stake in their 50:50 joint venture asset management company, DHFL Pramerica Asset Managers (DPAM), according to a press release from the fund house.
The transaction will make DPAM a wholly-owned business of PGIM, the global asset management business of Prudential Financial.
PGIM Inc., formerly Prudential Investment Management is the asset management arm of American life insurance company Prudential Financial.
The transaction will not change DPAM’s scope of business, the release said.
“This is a strategic call by DHFL to focus more on our core business. We firmly believe that this move is in the best interest of all parties and will have a positive outcome for all stakeholders.” said Kapil Wadhawan, chairman and managing director, DHFL.
As on November 30, the average assets under management of DHFL Pramerica Mutual Fund stood at Rs 11,163 crore.
Prudential Financial is among the top 10 largest investment managers in the world with more than $1 trillion in assets under management.
“We see tremendous opportunity in the asset management market in India and are very excited to be entering this next phase of growth,” said Glen Baptist, Chief Executive Officer, PGIM Global Partners.
Pramerica and DHFL formed the joint venture in 2014 and immediately expanded its business through the acquisition of Deutsche Asset Management (India).
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