DWS Group to acquire 40% stake in Nippon Life India's alternatives arm

The partnership will expand NIAIF's $1 bn alternatives platform, leveraging DWS's global network to attract offshore investors

German asset manager DWS Group has signed a memorandum of understanding (MoU) to acquire a 40 per cent stake in Nippon Life India AIF Management (NIAIF), a subsidiary of Nippon Life India Asset Management (NAM India). Under the proposed joint venture, DWS will invest in NIAIF to strengthen and expand its alternative investment platform, which currently manages close to $1 billion in commitments. Established a decade ago, NIAIF manages a diversified portfolio spanning private credit, listed equities, real estate, and venture capital. The partnership also aims to leverage DWS’s global reach to attract offshore investors and broaden NIAIF’s product suite.

 

Shares of NAM India rose 1.5 per cent to end at Rs 885, valuing the asset manager at Rs 56,375 crore.

 

“By bringing together DWS’s global expertise with our three decades of Indian asset management expertise, we aim to build a strong and scalable alternatives franchise that attracts both domestic and international investors,” said Sundeep Sikka, ED & CEO of Nippon Life India Asset Management.

 

Introduced in 2021, the AIF is sitting on $171 billion in gross capital commitments. This segment is projected to expand at 32 per cent CAGR to $693 billion over the next five years. The AIF assets under management have grown at an annual rate of about 28 per cent between 2019 and 2023.

 

“India is one of the core growth markets for global asset managers for the next decades and has long been a strategic ambition for DWS. The envisaged agreements tackle three of our priorities: drive growth in alternatives and passive, deliver on our promise to leverage our strong partnerships in Asia,” said Stefan Hoops, CEO of DWS.