BlackRock Inc, a well-known global investment firm, has decided to sell its minority stake in its Indian joint venture, DSP BlackRock Investment Managers, to the DSP group.
The global fund manager, which is listed on the New York Stock Exchange, has a 40% stake in the joint venture, which manages the mutual fund business in India.
According to a statement issued by BlackRock, the sale is expected to be completed soon, subject to regulatory and other approvals.
The financial consideration, however, is not mentioned.
According to Value Research, DSP BlackRock mutual fund had assets under management (AUM) totalling ₹ 82,395 crore as on March 31. Further, the fund house has a total of 16 open-ended equity funds apart from 12 such funds in the debt category. It also has five hybrid funds and 52 close-ended funds, as per data from Value Research.
Incidentally, the firm was earlier known as DSP Merrill Lynch Fund Managers and the name was changed to DSP BlackRock Investment Managers after BlackRock took over Merrill Lynch’s investment management division across the world in 2006.
As of March 31, BlackRock managed approximately $6.32 trillion in assets on behalf of investors worldwide.
“After nearly a decade of partnership, it is time for The DSP Group and BlackRock to take different paths, recognising the success each firm has contributed to each other. The Indian asset management industry is evolving rapidly and calls for unique approaches that play to the various strengths of BlackRock and The DSP Group,” the statement quoted Ryan Stork, Chairman, BlackRock Asia Pacific, as saying.
