IIHL to partner with Invesco, pick up 60% stake in AMC arm

IndusInd International Holdings (IIHL) on Tuesday said it will partner with Invesco, and pick up a 60 per cent stake in Invesco Asset Management India (IAMI).

IIHL is a Mauritius-based investment holding company with several investments in banking and financial services firms, including private sector lender IndusInd Bank, while  IAMI is the Indian arm of the global investment management firm Invesco having over USD 1.6 trillion in assets under management.

An official statement said IIHL and Invesco have entered into a definitive agreement to form a joint venture, as part of which IIHL will acquire a 60 per cent stake in IAMI. Invesco will retain a 40 per cent stake in the newly formed joint venture with IIHL, and both IIHL and Invesco will have sponsor status, as per a statement.

The Indian asset management industry has witnessed high interest among global platforms, including a joint venture announcement between Jio Financial Services and Blackrock in July 2023.

IAMI's onshore and offshore advisory and assets under management had stood at Rs 853.93 billion as of March 31, 2024, and a presence in 40 cities across the country, it said.

IIHL's bid for acquisition of Reliance Capital and its subsidiaries (life, health and general insurance, asset reconstruction, research and securities broking) was recently approved by the NCLT, and is in the process of concluding the implementation of the resolution plan, the statement said.

IIHL Chairman Ashok Hinduja said the partnership with Invesco is aligned with its business philosophy and principles of 'Partnership for Growth' and 'Act Local Think Global', and is another step in the journey of value creation for our shareholders.

"It was our vision to transform IIHL into a BFSI powerhouse. Our endeavour is to reach 'last home, last investor' in a transparent and efficient manner, living up to investors' expectation that 'mutual fund sahi hai'," he added.

"This is the most opportune time when India on the back of rising prosperity, investor confidence, and favourable demographics offers enormous prospects," IIHL Chief Executive Moses Harding said.

IAMI began operations in India in late 2008 with the acquisition of Lotus India Asset Management Company and has since grown to serve over 1.6 million retail investor folios and over 39,000 empanelled distributors, with over 70 per cent of its assets under management in equity and equity-oriented assets.

Invesco also operates an enterprise centre in Hyderabad employing more than 1,700 staff across a range of global support functions, including information technology, investment operations, finance, compliance, and human resources.