India’s IDFC and Natixis GAM finalise partnership
Paris and Boston-based Natixis Global Asset Management has acquired a 25% stake in India’s Infrastructure Development Finance Company asset management unit (IDFC AMC) and the IDFC AMC Trustee Company.
The IDFC AMC is the investment manager of IDFC Mutual Fund and is the IDFC Group’s asset management platform, focused on retail and institutional investors. The transaction, completed on December 8, allows NGAM to expand its global footprint in Asia.
NGAM said the partnership strengthens its global business, which already has a significant presence in Asia, including Japan, Taiwan, Singapore and China, and allows IDFC AMC to reach international investors interested in India. “This agreement is a significant step in NGAM’s corporate goal to diversify our business globally and strengthen our presence in Asia,” said Pierre Servant, CEO of NGAM.
Rajiv Lall, managing director and CEO of IDFC, called the deal a “win-win” in today’s “highly complex marketplace”. “NGAM has an established asset management business with expansive distribution capabilities around the world and through our new partnership, IDFC AMC now has the ability to offer domestic investors access to international investment opportunities through NGAM investment products.”
The IDFC is India’s premier financial services institution focused on infrastructure. It was set up in 1997 by the Government of India as a financier and catalyst for the private sector’s involvement in infrastructure development in India. IDFC aims to be a ‘one stop shop’ for infrastructure finance in India, meeting the requirements of an expanding client base.
The IDFC Asset Management Company had assets under management of some Rs 28,908 crores ($5.6bn) as of 30 September 2011. It manages a range of funds across debt and equity asset classes and has distribution across 39 cities directly, plus an indirect presence in over 208 towns across India.
Natixis Global Asset Management, part of Natixis, in turn owned by French banking group BPCE, is one of the 15 largest asset managers in the world, with AUM of some $705bn at end September 2011. Its proprietary distribution network helps package and deliver affiliates’ products around the world.
The affiliates include: Absolute Asia Asset Management; AEW Capital Management; AEW Europe; AlphaSimplex Group; Aurora Investment Management; Capital Growth Management; Caspian Capital Management; Darius Capital Partners; Gateway Investment Advisers; H2O Asset Management; Hansberger Global Investors; Harris Associates; Loomis, Sayles & Company; Natixis Asset Management; Natixis Global Associates; Natixis Multimanager; Ossiam; Reich & Tang Asset Management; Snyder Capital Management; and Vaughan Nelson Investment Management.
Listed on the Paris stock exchange, Natixis has a solid financial base with total Tier 1 capital of €16.5 billion, a Tier 1 ratio of 11.6% and quality long-term ratings (Standard & Poor’s and Fitch Ratings: A+; Moody’s: Aa3). Natixis parent BPCE holds 22% of total bank deposits in France, with 36 million clients spread over two networks, Banque Populaire and Caisse d’Epargne.