Acquisition of Goldman Sachs

Goldman Sachs India acquired,Mutual Fund

Question: Recently, who announced takeover of global giant Goldman Sachs’ mutual fund business in India?

(a) Future Capital Ltd.
(b) Birla Sun Life Ltd.
(c) Reliance Capital Asset Management
(d) HDFC

Ans (c)

Related facts:

  • On 21 October 2015 Reliance Capital Asset Management (RCAM) announced takeover of global giant Goldman Sachs mutual fund business in India.
  • RCAM paid a total sum of 243 crore rupees in cash to acquire it.
  • Under this deal, RCAM will acquire all 12 onshore mutual fund schemes of Goldman Sachs Asset Management (GSAM) India with total asset under management of 7132 crore rupees.
  • This acquisition will make Reliance mutual funds the exclusive fund manager for the government’s ambitious Central Public Sector Enterprises (CPSE) Exchange Traded Fund.
  • It should be noted that, in year 2014 Goldman Sachs was given the mandate to manage Central Public Sector Enterprises (CPSE) Exchange Traded Fund.
  • Through which the government has so far raised Rs. 4,000 crore by selling part of its stake in ten central PSUs as part of its disinvestment programme.
  • This deal will make yet another exit by a foreign player from theIndian mutual fund industry, consolidating the position of RCAM.
  • RCAM’s is subsidiary of Reliance Capital which in turn is financial services arm of business conglomerate Reliance Group. It is also present in insurance, brokerage and wealth management among other areas.
  • This company manages business by the name of Reliance mutual fund in mutual fund management business having average management assets 1, 52,919 crore (by the second quarter 2015).
  • Goldman Sachs Asset Management is the asset management arm of the Investment Management Division of The Goldman Sachs Group Inc. which oversees $1.19 trillion in assets under supervision
  • The acquisition is expected to be completed by the end of this fiscal year, which is dependent on the necessary regulatory approval.

Reference:
http://www.reliancecapital.co.in/pdf/Reliance-Capital-Asset-Management-to-acquire-Goldman-Sachs-Press-Release-21-oct-2015.pdf
http://www.reliancecapital.co.in/About-Reliance-Capital.aspx

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