Who: Reliance Capital
What: Signed agreement to acquire Goldman Sachs mutual funds business in India
When: 21 October 2015
Reliance Capital Asset Management (RCAM), a part of Anil Ambani led Reliance Capital, on 21 October 2015 signed definitive agreements (DA) to acquire Goldman Sachs Asset Management’s (GSAM) onshore business in India.
RCAM will pay a total sum of 243 crore rupees (37.5 million US dollar) in cash to acquire all onshore mutual fund schemes, including exchange traded funds, of GSAM India.
With this acquisition, RCAM will become the exclusive fund manager for the government’s CPSE ETFs.
As part of the transaction, RCAM will extend offers of employment to substantially all of GSAM India’s employees dedicated to supporting the ETF business.
GSAM India is a part of Goldman Sachs Asset Management, the asset management arm of the Investment Management Division of the Goldman Sachs Group, Inc. which oversees 1.19 trillion dollars in assets under supervision as of 30 September 2015.
At present, GSAM India currently manages 12 mutual fund schemes, including 10 ETF schemes, and is the largest ETF provider in India. It has a total AUM of 7132 crore rupees (1.1 billion US dollar) as of 30 September 2015, which includes 2172 crore rupees (334 million US dollar) of AUM in the Central Public Sector Enterprises (CPSE) ETF for which GSAM India is currently the exclusive fund manager.