To become DSP Investment Managers Pvt. Ltd., subject to regulatory approvals
Mumbai / Chennai, May7, 2018: The DSP Grouptoday announced that they will be buying out 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 advisorto the DSP Group for the transaction.
The DSP Group, headed by Mr. 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. DSP BlackRock manages/advices assets in excess of Rs. 1,10,000 crore ($16.5 billion) across equity, fixed income and alternatives (as on 30th April 2018) with over 2 million individual investors.
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. Though we will not be partners with regards to shareholding, DSP has tremendous respect for BlackRockand its principles and LarryFink will always be a dear friend whose values and foresight I continue to admire. 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. Our Group’s rich 152-year experience in India and insights gained while dealing with investors from all walks of life puts us in a unique position to not only be a part of this momentum but also to help Indian investors truly benefit from the growth story. We will continue investing in our people, our technology platforms and our relationships with clients & 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.”
Ryan Stork, Chairman of BlackRock Asia Pacific, said“BlackRock is committed to the India market for the long term and continues to be a fast-growing employer there, where we have over 1,400 employees in offices across Gurgaon, Mumbai and Bangalore.
“The firm’s approach to building and growing business in all markets 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. We wish them success and believe The DSP Group faces a bright future as the asset management industry evolves, thanks to their product set and the expertise that resides in the company. The Indian asset management industry is evolving rapidly and calls for unique approaches that play to the various strengths of BlackRock and The DSP Group.”
Laurence D. Fink, Chairman and CEO of BlackRock, said: “DSP has been a superb and valued partner to BlackRock for many years. I have the highest regard for Hemendra Kothari and the DSP family and wish nothing but the best for them in the years ahead. BlackRock remains deeply committed to India, and we look forward to having a continued positive impact on the asset management industry in the country.”
Kalpen Parekh, President,DSP BlackRock Investment Managers Pvt. Ltd said, “Our core mission is to deliver long term investment excellence and create wealth for our investors. Along with BlackRock we have evolved our systems, processes and risk techniques and are fully equipped to fulfil our destiny going forward. We have a good team in place that is passionate about the investment management business. We will continue to manage money with fiduciary responsibility and focus on creating a good investment experience for all our investors. We have all the required ingredients for consistent fund performance – long term orientation, focus on fundamentals,being scientific about our processes and an experienced team that has seen many market cycles in the last two decades. Along with our Chairman, I would like to thank BlackRock for being alongside us in the initial phase of our journey. The future is very bright and we will move ahead at full speed in the asset management space.”