Tyndall AM’s parent Nikko Asset Management Co., Ltd (Nikko AM) and Ambit Holdings Private Limited (Ambit) have formed a joint venture providing investment management and advisory services. Nikko AM and Ambit have agreed that the dedicated India funds from both partners will be managed and advised by the joint venture, with an AUM of US$150 million at launch.
Nikko AM will take up the following ownership in existing Ambit entities as part of the agreement:
- 50.1% of Ambit Mauritius Investment Managers Private Limited (Ambit Mauritius) – a company registered as a Foreign Institutional Investor by the Securities and Exchange Board of India, incorporated in Mauritius, that provides investment management services in respect of Indian securities
- 49.0% of Ambit Investment Advisors Private Limited (AIA) – a company incorporated in India that will provide investment advisory services.
Bill Wilder, President and CIO of Nikko AM, will be appointed as chairman of the board of AIA, and Andrew Holland will become its CEO. Nikko AM will assist Ambit in building out its advisory team in India.
The partnership gives Ambit the ability to tap into Nikko AM’s product development capabilities and extensive network of over 300 distributors across Asia. In addition, it provides Nikko AM with local knowledge and investment expertise for its India funds.
Building an investment business in India has been a long-standing pillar of Nikko AM’s strategic plan to position itself as a leading Asian asset management firm. India is one of the leaders in the Asia region, with its high rate of economic growth fuelled by favourable demographics, rising incomes and increasing levels of urbanisation. These factors have made India an increasingly attractive investment destination for investors worldwide. The joint venture adds to Nikko AM’s already strong presence in Asia – now 18 offices covering nine markets.
Timothy McCarthy, chairman and CEO of Nikko AM, commented: “This joint venture is built on a strong personal and professional connection as we have known each other for over five years. Partnering with quality local firms like Ambit is core to our ‘multi local’ approach; together, I am confident we will build a successful business.”
Ambit‘s Investment Advisory business is a critical component of the services provided by Ambit as a fully fledged financial services company. The JV with Nikko AM is the next step in the growth of the Investment Advisory business unit. Through the JV, Ambit will be able to demonstrate its ability to manage large India dedicated funds, thus assisting Nikko AM to raise offshore assets through the showcase performance of these funds.
Ashok Wadhwa, group CEO of Ambit, commented: “We have had a long partnership with Nikko AM as part of the agreement that Ambit signed with Nikko AM in 2007. Ambit’s capability in its Investment Advisory business is world class and I am certain that the JV will be very successful under the leadership of Andrew and Bill.”
Andrew Holland, CEO of Ambit Investment Advisory, commented: “I am extremely pleased with the formation of the JV and am certain that we will build a strong business together with our investment capability and strategies and Nikko AM’s fund raising capability.”
SMBC Nikko is the Financial Adviser to Nikko AM on the transaction, while Ambit Corporate Finance is the Financial Adviser to Ambit.
