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HSBC Asset Management acquires L&T Investment Management Limited


HSBC Asset Management (India) Private Ltd, an indirect wholly-owned subsidiary of HSBC Holdings plc (HSBC), has entered into an agreement with L&T Finance Holdings Limited (LTFH) to fully acquire L&T Investment Management Limited (LTIM) for $425 million (Rs 3,200 crore).

LTIM is a wholly-owned subsidiary of LTFH and the investment manager of the L&T Mutual Fund.

Private equity firm Blackstone had also been in talks with L&T Mutual Fund, but the deal didn’t come through due to differences in valuations and pending regulatory approval. L&T had been looking to exit several of its non-core or sub optimal businesses to deleverage its consolidated balance sheet.

L&T Mutual fund ranks no 12 in the 43 player Indian mutual fund industry with total assets under management of Rs 77,608 crore as of July 31 of which equity assets account for Rs 38,807 crore. HSBC on the other hand, ranks 23rd in the industry with assets of Rs 11,211 crore, with equity assets account for Rs 3369 crore.

The top 10 players account for 82% of the industry’s assets under management.

Axis mutual fund and IIFL Mutual Fund and Avendus Capital Pvt. Ltd. had also thrown their hat in the ring to buy the business from L&T after a formal sale was launched by Citigroup and JP Morgan in late 2019.



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