The partners also venture into investment advisory business
Ambit Holdings restructured its partnership with Nikko Asset Management, a Japanese financial service provider on Monday in their proposed mutual fund business. After restructuring, Ambit will hold 50% stake in the joint venture as opposed to the original 24% announced in 2007. Under the deal, Nikko will assist Ambit in building its advisory team in the country and also assist in enhancing its product development capabilities.
Nikko AM has been keen to enter the Indian market for a long time. Nikko AM is already present in Asia covering seven markets.
The two companies also announced the formation of a new joint venture to offer investment management and advisory services in which Nikko holds majority 50.1 percent stake in Ambit Mauritius Investment Managers and 49 percent in Ambit Investment Advisors.
Companies did not reveal the deal size. The two firms will manage dedicated Indian assets worth USD 150 million from their schemes - Nikko AM BRIC Fund (USD 115 million), Ambit Frontier Fund and Ambit QInvest Fund (USD 35 million).
