The UK-based investment bank, Lazard Group, is likely to enter the Indian asset management business through Lazard India, joining the likes of JP Morgan, AIG, UBS and Dawnay Day, which have entered the booming Indian mutual fund business in recent months. |
Lazard India was set up by international banker Udayan Bose and is now a full-owned subsidiary of Lazard, UK, after Bose sold his stake in 2004. |
Lazard India CEO and Managing Director K Balakrishnan said, "We are very opportunistic and keep evaluating options. India is a good market and we will enter the asset management space in India at the right time." |
According to a recent Thomson Financial report, Lazard is among the top 10 financial advisors and was involved in 5 deals in India. Globally, its asset management business provides investment management and advisory services to institutional clients, financial intermediaries, private clients and investment vehicles. |
The company's total assets under management were $124.9 billion as of March 31, 2007. These were managed for institutional (corporations, labour unions, public pension funds, insurance companies and banks; and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors) and individual clients (mainly family offices and high-net worth individuals). |
Out of the assets under management, 84 per cent was invested in equities, 10 per cent in fixed income, three per cent in alternative investments, two per cent in cash and one per cent in merchant banking funds. About 51 per cent of the assets under management went into international (non-US) investments. |
AIG, JP Morgan, UBS (through acquisition of Stanchart's MF business) and Dawnay Day entered the asset management business without tying up with any domestic players. The Korean major, Mirae Asset, which has applied to the Securities and Exchange Board of India (Sebi), is also planning a solo entry. |
The assets owned by mutual funds in India crossed Rs 4-trillion for the first time at the end of May, with the last one-trillion coming up in nine months. |