Real estate major DLF Ltd has exited the mutual fund business venture that it jointly set up with US-based Prudential Financial Inc.
According to the company’s filing with the exchange, the mutual fund business, DLF Pramerica Asset Managers Private Ltd will now be renamed Pramerica Asset Managers Private Limited, which will be fully owned by Prudential Financial.
In December 2007, US-based Prudential Financial, Inc. and DLF Ltd signed an agreement to form a 61:39 JV for setting up an Asset Management Company.
DLF Pramerica had hired Vijai Mantri as its CEO and MD responsible for setting up the entire investment and wealth management platform for the company. Mantri was earlier the CEO of Deutsche Asset Management Company.
“DLF’s decision to exit this area of business was triggered due the changes by SEBI in its evaluation criteria for granting approval to the joint venture mutual fund to commence its business. The criteria required DLF to have a five-year track record in the financial services business,” according to the company’s filing with the Bombay Stock Exchange.
DLF runs another joint venture with Prudential – DLF Pramerica Life Insurance Company Ltd. Unlike the mutual fund business where DLF held a minority share, in the life insurance business, DLF holds 74% with Prudential retaining the rest.
DLF Pramerica Life Insurance commenced operations in September 2008 and is headed by Kapil Mehta (former Vice President, Business Development & Strategic Planning at Max New York Insurance).
The real estate major has invested close to Rs 100 crore in the life insurance business.