The fund house is close to buying 39 percent stake in Prudent Corporate Advisory Service, says Economic Times.
Pramerica Mutual Fund is set to expand its distribution service by buying 39 percent stake in Prudent Corporate Advisory Service for a deal price of Rs. 20 crore, says a report published in Economic Times, Mumbai today.
According to the report, Prudent Corporate Advisory Service is an Ahmedabad based retail distributor and is among the top five retail distributors in India. Pramerica plans to foray into PMS business and this deal will help Pramerica access rich Prudent clients.
Prudent Advisory Service was established in 2000 with a vision of providing professional services in the area of personal and corporate investments. It offers personal and corporate investment planning through mutual funds, equities, derivatives, third party products, fixed income products, life/general insurance and real estate services through various companies. It has partnered with 4,000 IFAs and manages AUM of Rs 3,500 crore. It also manages 1,25,000 retail SIPs. According to last year’s AMFI data, it has earned a commission of Rs 21 crore.
Both companies did not confirm the development to Cafemutual. However, a source familiar with the deal told Cafemutual that the deal is to be closed within a week.
If and when such a deal takes place, it will be a rare instance of an AMC picking up a stake in a distribution house.
