PE Fund Investments
L&T Finance to sell Mutual Fund business to HSBC for $425-M
Mumbai-based, publicly listed L&T Finance Holdings (LTFH) is to sell its wholly owned mutual fund business unit L&T Investment Management Ltd (LTIM) to HSBC Asset Management (India) Ltd for USD 425 million (subject to customary adjustments). LTIM is the 12th largest asset management company (AMC) in India and offers a basket of equity, fixed income and hybrid schemes to both retail and institutional investors. JP Morgan and Citi were the financial advisors to LTFH. Cyril Amarchand Mangaldas acted as the legal advisors and PwC acted as due diligence and tax advisors to LTFH. LTIM had reported a total income of INR 347.88 Cr during the last financial year and a Net Worth of INR 643.01 Cr. HSBC intends to merge the operations of LTIM with that of its existing asset management business in India, which had assets under management (AUM) of INR 11,700 crore (USD 1.6 Billion) as of September 2021.
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