Mumbai, Aug. 17: Reliance Capital today announced it had completed the sale of a 26 per cent stake in its asset management and mutual fund unit to Nippon Life Insurance for Rs 1,450 crore ($29 million).
The deal values Reliance Capital Asset Management (RCam) at Rs 5,600 crore ($1.1 billion).
“We are happy to announce the completion of this transaction and welcome Nippon Life Insurance as our valued partner in the asset management business,” said Sam Ghosh, CEO of Reliance Capital.
RCam is India’s largest asset management company, handling assets worth Rs 1,40,000 crore ($28 billion) across mutual funds, government-sponsored public funds, managed accounts and hedge funds
The deal is being seen as the largest investment in an Indian asset management company. It is also the largest foreign direct investment in the domestic mutual fund industry.
Nippon Life, the $86-billion Japanese insurance behemoth, is already a strategic partner in Reliance Life Insurance. It has operating profits of $5.8 billion. The 123-year-old Global Fortune 100 company manages assets worth over $600 billion and is the fifth largest insurance company in the world.
Reliance Capital Asset Management has inducted Yutaka Ideguchi as a non-executive director and Nippon Life’s nominee on the board.