IIFL AMC has bought a 2.59% minority stake in Reliance Nippon Life AMC through its private equity fund called IIFL Special Opportunities Fund at $60 million.
The fund comes under AIF category II (private equity funds). This fund invest in unlisted securities, which would be listed within 6-12 months.
In a press release, the company said, “IIFL Special Opportunities Fund and its Series 2 and Series 3 have collectively acquired 2.59% of paid up equity share capital of Reliance Nippon Life Asset Management, through secondary market purchase. The stake was acquired for 60 Million USD.”
Earlier in May 2017, the fund had picked up 1.59% stake in private insurance company, ICICI Lombard General Insurance.
Both ICICI Lombard and Reliance Nippon are about to issue their IPOs.
Prashasta Seth, CIO of IIFL Asset Management Business said, “Reliance Nippon Life Asset Management is going through an exciting phase and we are thrilled to be a part of their growth trajectory. The mutual fund industry’s assets under management have doubled to Rs.20 trillion in less than three years and we believe Reliance Nippon Life AMC is well-positioned to ride this wave.”
Amit Shah, CEO of IIFL Asset Management Business said, “The IPO market has been rewarding for the right kind of companies. The size of our fund, our due diligence and research have helped us pick up stake in ICICI Lombard and recently Reliance AMC. We have garnered a commitment of around Rs. 4,300 crore from our funds and could be well on our way to be a billion dollar domestic fund making it one of the biggest AIFs in India so far.”
