 "Fairfax to buy 49.2% in Quantum Advisors")
Quantum Advisors Pvt Ltd said on Friday it had reached an agreement with HWIC Asia Fund (HWIC), an affiliate of Fairfax Financial Holdings, to acquire 49.2 per cent of the equity shares of Quantum Advisors.
Fairfax Financial Holdings is listed on the Toronto Stock Exchange.
HWIC will acquire shares from an existing financial shareholder and subscribe to new shares issued by Quantum Advisors. Founder and Chairman Ajit Dayal and Managing Director I V Subramaniam will not be selling any shares held in Quantum Advisors.
Quantum Advisors advises and manages India allocations for foreign portfolio investors. Its 100 per cent owned subsidiary is Quantum Asset Management (QAMC), which is the investment manager of the Quantum MF.
The investment by the Fairfax group will allow Quantum Asset Management Company to ensure that it has the minimum net worth of Rs 50 crore as stipulated by SEBI in May 2014. “With the minimum net worth issue behind us, we expect a significant acceleration in the growth in the number of investors in the Quantum Mutual Funds,” said Jimmy Patel, CEO, Quantum Asset Management.
As of September 2015, Quantum MF had average assets under management of about Rs 600 crore.
Quantum Advisors and HWIC will initiate the process of filing for the relevant approvals from existing clients and investors and various statutory and government bodies.
“We are honoured to be associated with the Fairfax group, which has built an impressive track record of supporting and building global businesses in diverse fields by investing in management teams who focus on integrity and ethical values,” said Dayal.
“We invested in Quantum Advisors because of its long-term value approach to investing and its focus on integrity and ethical values. With our investment, Quantum Advisors will have the necessary resources to expand its client base and further grow its operations. Quantum Advisors will continue to operate on a decentralised basis independent from the Fairfax group,” said Prem Watsa, chairman and CEO of Fairfax.
Earlier this year, Fairfax India had announced an open offer to buy 26 per cent in IIFL Holdings.
