Invesco in JV with India’s Religare Asset Management

Invesco, the $670bn Atlanta, US-based asset manager, has agreed to buy a 49% stake in Religare Asset Management Company, a prominent Indian financial services group.

RAMC, the asset management arm of holding company Religare Enterprises Limited (REL), has onshore and offshore advisory assets under management of more than $2.6bn (as of August 31, 2012) and a presence in 53 cities across India.

Saurabh Nanavati, current chief executive of RAMC, along with the existing management team, will manage the joint venture, to be named Religare Invesco Asset Management Company. The transaction is subject to regulatory approvals.

The acquisition will boost Invesco’s presence in India, currently exercised through its affiliate WL Ross & Co in Mumbai. Invesco also operates an enterprise centre in Hyderabad, first opened in 2006, employing more than 600 staff across a range of global support functions, including information technology, investment operations, finance, compliance and human resources.

Martin L. Flanagan, president and chief executive of Invesco, said: “This addition will enhance Invesco’s presence in an important and growing market, while providing Religare’s clients access to our broad range of investment solutions. Our agreement with Religare will expand the comprehensive range of investment capabilities Invesco provides to our retail and institutional clients around the world, and further position both firms for long-term success.”

RAMC, which began operations in end 2008, has recorded almost a four-fold increase in its combined assets under management in the last four years. It has also established its Portfolio Management Services (PMS) and Offshore advisory platforms in the last two years and achieved financial profitability in its third full year of operations (year ending March 2012).

Shachindra Nath, group chief executive, REL, said: “This investment is a validation of Religare’s belief in the long-term growth potential of the Indian financial services industry. Religare’s asset management business has consistently focused on developing its investment capabilities through a well-defined, proprietary investment process both in equity and fixed income. With a good three-year performance track record and solid revenue growth, we believe that both our retail and offshore businesses would be propelled to the next level of their growth journey.”

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