US-based investment management firm BlackRock has agreed to divest its 40% stake in DSP BlackRock Investment Managers to its joint venture partner The DSP Group.
Terms of the deal have not been disclosed.
The joint venture is said to manage and market a range of co-branded mutual funds to the customers in India.
After finalizing naming transfers and investment scheme unitholder communications, the deal is expected to be completed.
BlackRock handles a diverse book of Indian equity and fixed income investments in active and passive indexed or ETF strategies.
At present, BlackRock employs more than 1,400 employees in its offices situated in Gurgaon, Mumbai and Bangalore.
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.
DSP Group chairman Hemendra Kothari 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 BlackRock and its principles and Larry Fink will always be a dear friend whose values and foresight I continue to admire.”
BlackRock managed around $6.32 trillion in assets on behalf of its investors across the globe, as of 31 March this year.
The DSP Group provides financial services to the customers in India. In 1996, The DSP Group’s joint venture arrangement with Merrill Lynch enabled to establish its retail asset management