Goldman Sachs acquires Benchmark Asset Management Company  

March 16, 2011

Following the acquisition, Goldman Sachs will integrate entire operations of Benchmark Asset Management Company as well as its manpower. Besides, Goldman Sachs Asset Management intends to bring actively managed on-shore funds to India

Moneylife Digital Team

Goldman Sachs Asset Management today said it has agreed to acquire Benchmark Mutual Fund to increase its presence in the country. The transaction is expected to close later in the year, subject to regulatory approvals, Goldman Sachs Asset Management said in a statement, without disclosing the deal amount.

Following the acquisition, Goldman Sachs will integrate entire operations of Benchmark Asset Management Company as well as its manpower. Goldman Sachs Asset Management got market regulator Securities and Exchange Board of India's (SEBI) approval in 2008.

Goldman Sachs Asset Management has a team of eight based in Mumbai, headed by Prashant Khemka. The team currently provides research for off-shore funds, including Indian and other BRIC equities.

The last acquisition in the asset management space in the country happened in 2008, when Religare Enterprises took over Lotus India Mutual Fund from Temasek-promoted Alexandra Fund Management and Sabre Capital.

In addition, it said, Goldman Sachs Asset Management intends to bring actively managed on-shore funds to India.

"India is one of the world's largest growth markets and a strategic priority for our firm. The acquisition of Benchmark illustrates our commitment to expand in India and we look forward to working closely with Benchmark to accelerate the growth of the business," said Goldman Sachs Asset Management head (Asia) Oliver Bolitho.

"We are also pleased to announce that we will bring on-shore funds to India-building on the strong expertise that Prashant Khemka's team has established," he said.

The fund launch would be after the acquisition process is complete, he said.

Benchmark Asset Management Company was founded in 2001 and is the number one Exchange Traded Funds (ETFs) provider by both market share and assets under management (AUM) in India. It has around $700 million asset under management (AUM).

"As index and ETF product demand continues to grow significantly in India, Goldman Sachs' local expertise and global platform will provide us the opportunity to grow further and enhance our offering for clients," said Benchmark Asset Management Company executive director Sanjiv Shah.

With over 40 mutual fund companies operating in the country, the average assets managed stood at Rs6,75,377 crore on 31 December 2010.

With so many players in the market Indian is still very attractive market for asset management, Mr Bolitho said.