Eton Park, the US-based global multi-strategy investment organisation, has bought 5 per cent stake in Reliance Capital Asset Management (RCAM), the wholly-owned mutual fund arm of Reliance Capital, for Rs 501 crore.
The deal values the Anil Ambani-controlled Asset Management Company (AMC) at over Rs 10,000 crore. The proposed investment values RCAM at approximately 13 per cent of its Assets Under Management (AUM). Reliance Capital AMC manages Rs 77,764 crore (as on November 30), and is the top fund house in terms of AUM.
For expansion
According to a statement issued by Reliance Capital, “The RCAM valuation translates into a price of Rs 400 per share of Reliance Capital.” The proceeds of the transaction will be utilised by RCAM for its domestic and international expansion. Eton Park currently manages over $10 billion through its offices in New York, London and Hong Kong. The investment by Eton Park comes at a time when a host of global asset management companies announce entry into Indian MF space.
UTI Mutual Fund is expected to sell 20 per cent stake to strategic and financial investors ahead of its proposed IPO early next year. According to sources, National Australia Bank and Japan’s Shinsei are likely to pick up 5 pc stakes each in the AMC.
