DLF, Prudential form JV for asset managment

After life insurance, DLF is foraying into asset management through a joint venture with the US-based Prudential Financial Inc.

DLF will hold a minority stake of 39%, and Prudential will hold the remaining 61%. The two companies will jointly invest $50 million in the new company, which is expected to start operations from the next financial year.

The new joint venture company has been christened DLF Pramerica Asset Managers, and is subject to approvals from the regulators.

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

"India is a very important market for Prudential. As much as $140 billion of assets are under management in India, and it 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.

In February, DLF had formed a life insurance joint venture with Prudential Financial, which is also expected to begin operations from the next financial year.

DLF, the country's largest real estate developer, 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.