HSBC Asset Management (India) Private has entered into an agreement with L&T Finance Holdings (LTFH) to fully acquire L&T Investment Management Limited (LTIM) for $425m (£317m, €375m).
LTIM is a wholly-owned subsidiary of LTFH and the investment manager of the L&T Mutual Fund.
The India-based investment manager has of INR803bn (£7.98bn, $10.8bn, €9.43bn) assets under management and over 2.4 million active portfolios.
LTIM offers a distribution platform, encompassing banks, regional distributors, over 50,000 independent financial advisers, as well as a footprint across 65 locations throughout India.
The proposed acquisition, subject to regulatory approval, will help HSBC deliver on its “strategy of becoming a leading wealth manager in Asia”.
HSBC said that strengthening its asset management business in India “will add to its ability to serve the wealth needs of its customers in India as well as those of its growing non-resident Indian customer base across the world”.
Following the completion of the acquisition, HSBC intends to merge the operations of LTIM with its existing asset management business in India, which had $1.6bn in assets under management, as of September 2021.
Noel Quinn, HSBC group chief executive, said: “This transaction enhances the strength of our business in India and reinforces our status as one of Asia’s leading wealth managers.
“Combining LTIM with our existing Indian asset management business gives us the scale, reach and capabilities to capture some of the 15-20% annual asset management market growth expected in India over the next five years.
“It also boosts our ability to serve India’s growing wealth needs, along with those of the 18 million non-resident Indians around the world.
“Together with our recent announcement to acquire AXA Singapore, this demonstrates our commitment to capturing the Asia wealth opportunity. We will continue to invest significantly to achieve that goal.”