Kotak Mahindra Bank's wholly owned subsidiary Kotak Mahindra Asset Management Company Ltd (KMAMC), has executed a definitive agreement to acquire the domestic schemes of PineBridge Mutual Fund (PBI MF), a fund managed by PineBridge Investments Asset Management Company (India) Pvt Ltd, for an undisclosed amount, as per a stock market disclosure. The deal is subject to regulatory approvals.
Kotak is the ninth largest mutual fund house in the country while PineBridge is at 36th position, of 46 mutual fund asset management firms.
As of August 31, 2014, the assets under management (AUM) of PBI MF was around Rs 660 crore.
Although the deal amount was not disclosed, deals in the sector typically value firms in the range of 5-7 per cent of AUM. By the benchmark the deal could be just under Rs 50 crore.
Founded in 2006, PineBridge Investments Asset Management Company India (formerly AIG Global Asset Management Company India Pvt Ltd) provides asset management services like advisory and administrative services. The firm also acts as an investment manager to the mutual fund. It is a subsidiary of PineBridge Investments.
"The assets included are equity oriented which provides a further enrichment to our equity base. We have an appetite for further acquisitions which can create value for us and we would be keen to consider such opportunities," said Gaurang Shah, president - asset management, life insurance and international business, KMBL.
Kotak Mahindra group is one of India's leading private financial services conglomerates. The group offers a wide range of financial services, including commercial banking, stock broking, mutual funds, life insurance and investment banking.
The firm had an AUM of around Rs 37,000 crore as of August 31, 2014.
Shares of Kotak Mahindra Bank closed at Rs 1,063.05 each, up 1.49 per cent on BSE in a weak Mumbai market on Friday.
(Edited by Joby Puthuparampil Johnson)