American money manager BlackRock has decided to sell its 40% interest in DSP BlackRock Investment Managers to its joint venture partner The DSP Group.
The financial details of the agreement were not divulged.
The joint venture is engaged in managing and marketing various co-branded mutual funds in India.
The sale will mark the exit of BlackRock from the Indian mutual fund business. The deal is subject to regulatory approval and other closing conditions.
The naming transfers and investment scheme unitholder communications of the transaction are yet to be finalised.
BlackRock Asia Pacific chairman Ryan Stork said: “The firm’s approach to building and growing business in any market where we operate is based on harnessing the full strength of an integrated business model to deliver on behalf of our clients.
“After nearly a decade of partnership, it is time for The DSP Group and BlackRock to take different paths, recognizing the success each firm has contributed to each other.”
DSP Group chairman Hemendra Kothari said: “We at the DSP Group are very excited about our days ahead and we believe we have just scratched the surface of the opportunity that lies before us.
“The next decade will see the asset management industry in India grow manifold and the DSP Group is very well poised to capture a significant portion of that growth.”
Currently, BlackRock employs more than 1,400 people in India across its three offices in Gurgaon, Mumbai and Bangalore.
Globally, the firm manages more than $6.32tn in assets, reported Livemint.com.