DLF plans mutual fund foray with Prudential

Joint venture company to be called DLF Pramerica.

After life insurance, DLF Ltd is foraying into asset management by offering local and global mutual funds through a joint venture with Prudential Financial Inc of the United States.

DLF will hold a minority stake of 39 per cent in the company, and Prudential will hold the remaining 61 per cent. The two companies will jointly invest $50 million in the new company, which is expected to start operations in the next financial year. The new joint venture company called DLF Pramerica Asset Managers Pvt Ltd is awaiting approvals from Indian regulators.

"This is not a capital intensive business, but a knowledge intensive one. It is very clear who has the expertise in this business and which is why we are holding a minority stake," said Rajiv Singh, vice-chairman, DLF.

"India is a very important market for Prudential. We have $140 billion of assets under management in India, which is growing significantly," said Stephen Pelletier, chairman and chief executive officer, Prudential International Investments LLC, a unit of Prudential Financial. Prudential Financial has approximately $637 billion of assets under management globally.

In February, DLF had formed a life insurance joint venture with Prudential Financial. DLF has been foraying into new businesses for around a year now.

While its entry into hospitality, infrastructure and special economic zones is an extension of its core real estate business, DLF has also decided to enter telecom, wind energy and retail.