IIFL Asset Management Ltd has signed a binding agreement to acquire Ashburton Investments' India Equity Opportunities Fund for an undisclosed amount, a press statement said.
Under the agreement, the Ashburton fund will be merged into IIFL's India Equity Opportunities Fund. The size of the merged fund will be around $120 million (about Rs 775 crore), an IIFL spokesperson said.
As on 30 June 2017, Ashburton's India Equity Opportunities Fund stood at $112.35 million, according to data on its website. A dollar-denominated fund, it makes equity or equity-related investments in companies based out of India or having significant operations in India.
Jonathan Schiessl, who has been managing Ashburton India Equity Opportunities Fund since its launch in 2012, has been appointed as chief investment officer and lead manager of the merged fund. Swati Jain, another senior Ashburton employee, has been appointed as head of institutional sales of the merged fund.
"Global investors continue to increasingly look at India. With Jonathan’s successful track record, especially in his India approach, he will add significant value for investors,” said Amit Shah, chief executive officer of IIFL Asset Management Business.
Boshoff Grobler, chief executive officer of Ashburton Investments, said his firm was one of the first investment managers to give African investors access to the fast-growing economy of India.
Ashburton Investments is the asset management arm of South Africa-based FirstRand Group.
IIFL India Equity Opportunities Fund, a sub-fund of IIFL Fund, is an open-ended investment company based out of Luxembourg. The assets of IIFL AMC are spread across mutual funds, alternate investment funds and portfolio management services. It has assets under management of around $4 billion as on 30 September 2017, the release said.