City-based Ambit Holdings has joined hands with Tokyo’s Nikko Asset Management to offer investment management and advisory services in India and Mauritius. Under the 50:50 joint venture (JV), both would initially manage assets worth $150 million from Mauritius.
The partnership will enable Ambit to tap into Nikko AM’s product development capabilities and extensive network of distributors. On the other hand, it will give Nikko AM local knowledge and investment expertise for its India funds.
Timothy McCarthy, chairman and chief executive officer of Nikko AM, said, “We are overweight India. This JV is built on personal and professional connections.”
Of the $150 million, $100 million would be invested in Indian listed companies and the rest would be dedicated to Brazil, Russia and China, he said.
An arm of Sumitomo Trust and Banking Co Ltd and incorporated in 1959, Nikko AM offers its services to pooled investment vehicles. It also caters to pension and profit-sharing plans, banking/thrift institutions, charitable organisations, state/municipal government entities, government-affiliated agencies and other businesses. It manages client-focused equity and fixed income, as well hedge funds.
Ambit Holdings offers investment banking, private equity, securities brokerage and wealth management services. Its subsidiaries include Ambit Corporate Finance, Ambit Capital and Ambit Pragma.
Under the current agreement, Nikko Asset Management will acquire 50.1 per cent in Ambit Mauritius Investment Managers Pvt Ltd that provides investment management services with a focus on Indian securities.
It will also acquire 49 per cent in Ambit Investment Advisors Pvt Ltd, a company incorporated in India.
Andrew Holland, who had quit Merill Lynch to join Ambit, will become the chief executive of Ambit Investment Advisors. Bill Wilder, president and chief investment officer of Nikko, will be the chairman.
“We have had a long partnership with Nikko AM as part of the agreement that Ambit signed with Nikko AM in 2007. I am certain the JV will be extremely successful,” said Ashok Wadhwa, group chief executive of Ambit Holdings.
Apart from this, Nikko is also looking to partner with Ambit for an asset management business in India, for which permission from the capital market regulator has been sought. If the venture goes through, Nikko intends to hold 51 per cent in that business, too.