DSP Group to buy BlackRock stakes
DSP BlackRock Investment Managers Pvt. Ltd.
Guwahati, May 14: The DSP Group on Monday announced that they would be buying BlackRock’s 40% stake in DSP BlackRock Investment Managers Pvt. Ltd.
The firm is proposed to be known as DSP Investment Managers Pvt. Ltd. and DSP BlackRock Mutual Fund is proposed to become DSP Mutual Fund, subject to regulatory approvals. DSP BlackRock, a Joint Venture between the DSP Group and BlackRock is one of the premier Asset Management Companies in India.
The DSP Group has a track record of over 152 years and currently owns a 60% stake in the joint venture. BlackRock Inc., which currently owns a 40% stake in the JV is one of the largest listed asset management companies in the world. The joint venture partners have entered into an agreement whereby DSP Group will acquire the entire 40% stake of BlackRock, to become the sole owner. Arpwood Capital Private Limited was the exclusive financial advisor and TT & A was the legal advisor to the DSP Group for the transaction. The DSP Group, headed by Hemendra Kothari, is one of the oldest and most respected financial services firms in India.
The DSP Group’s joint venture arrangement with Merrill Lynch Investment Managers in 1996 established its retail asset management business in India, DSP Merrill Lynch Asset Management (India) Ltd. This business went on to become DSP BlackRock Investment Managers Pvt. Ltd. in 2008 (after BlackRock Inc. took over Merrill Lynch’s global asset management business in 2006), which is today one of India’s premier investment management firms.
DSP BlackRock has a robust investment process in place across all its investment teams managing active as well as passive investments across both equities and fixed income.
Hemendra Kothari, Chairman, DSP BlackRock Investment Managers Pvt. Ltd. said: “First and foremost, I want to thank BlackRock for being a great partner to the DSP Group. We embarked on a journey together nearly a decade ago and have built an institution with solid processes and systems that will thrive and stand the test of time. We will continue investing in our people, our technology platforms and our relationships with clients and distribution partners to maintain our steadfast focus on delivering long term investment excellence. Pursuing the investor’s best interests is always at the forefront of all that we do and our unwavering integrity and commitment to excellence has helped us earn our clients’ trust. This will remain the core of our mission, as we enter this next phase as DSP Mutual Fund.” This was stated in a press release.