The DSP Group has today announced that they will buy out BlackRock’s 40% stake in DSP BlackRock Investment Managers. With this, DSP BlackRock MF will become DSP MF. However, the fund house has to wait for regulatory approvals.
While the DSP Group has a track record of over 152 years and currently owns a 60% stake in the joint venture, BlackRock Inc., which currently owns a 40% stake in the JV, is the largest asset management company in the world.
Prior to this, the DSP Group had a joint venture with Merrill Lynch Investment Managers in 1996 for its asset management business in India, DSP Merrill Lynch Asset Management (India). This business went on to become DSP BlackRock Investment Managers in 2008 (after BlackRock Inc. took over Merrill Lynch’s global asset management business in 2006).
In a press release, Hemendra Kothari, Chairman, DSP BlackRock Investment Managers said: “Though we will not be partners with regard to shareholding, DSP has tremendous respect for BlackRock and its principles and Larry Fink will always be a dear friend whose values and foresight I continue to admire. We at the DSP Group are very excited about our days ahead and we believe we have just scratched the surface of the opportunity that lies before us. The next decade will see the asset management industry in India grow manifold and the DSP Group is very well poised to capture a significant portion of that growth. We will continue investing in our people, our technology platforms and our relationships with clients and distribution partners to maintain our steadfast focus on delivering long term investment excellence.”
