BlackRock Inc., the world’s largest asset manager with around Rs 423 trillion in assets worldwide, has announced to sell its 40 percent stake in DSP BlackRock Investment Managers to its joint venture partner DSP Group. According to the reports, DSP BlackRock Investment Managers is valued at Rs5,000 crore.
This is not the first time that the foreign partner has exited the mutual fund business, as the list includes the name of Nomura, Merrill Lynch, Goldman Sachs and JP Morgan which have exited the mutual fund business in the past.
In a letter issued to investors, Hemandra Kothari, chairman of DSP BlackRock Investment Managers, said, “As of today, the DSP Group holds a controlling stake in DSP BlackRock Investment Managers and owns 60%. I am very proud to announce that after all necessary regulatory approvals, DSP group will increase its stake to 100%. Thereafter, we will be renamed as “DSP Investment Managers”.
According to data from Association of Mutual Funds in India, DSP BlackRock, currently, has average assets under management of Rs 86,000 crore. BlackRock had taken Merrill Lynch’s 40 percent stake in the company in 2008.
He wrote in the letter that over the past 152 years, the DSP Group has flourished in the financial services space in India. His great-grandfather was one of the founding members of the Bombay Stock Exchange in the 1870s and his family has participated on several fronts ranging from investment banking in the 1970s to wealth and asset management from the 1990s.
He talked about vast international experience gained through tying up with Dresdner Bank AG, Banque Francaise Du Commerce Exterieur (BFCE), Swiss Bank Corporation (now UBS), Merrill Lynch and BlackRock.
Addressing the concerns of investors, Kothari, said, “We have built an ambitious team of passionate professionals led by our President, Kalpen Parekh. Our team is aligned in values, thinks big and we have set the highest standards for ourselves, which gives me the belief that our future will be bright.”
He added, “Our reputation is very important for me and my team and conducting business with unwavering ethics and integrity will always take priority above the firm’s bottom line. I assure you that your interest will always be at the core of our business and we will always maintain a relentless focus on doing what’s best for you.”
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