Lazard may float MF

The UK-based investment bank, Lazard Group, is likely to enter the Indian asset management business through Lazard India, joining the likes of JP Morgan, AIG, UBS and Dawnay Day, which have entered the booming Indian mutual fund business in recent months.

Lazard India was set up by international banker Udayan Bose and is now a full-owned subsidiary of Lazard, UK, after Bose sold his stake in 2004.

Lazard India CEO and Managing Director K Balakrishnan said, “We are very opportunistic and keep evaluating options. India is a good market and we will enter the asset management space in India at the right time.”

According to a recent Thomson Financial report, Lazard is among the top 10 financial advisors and was involved in 5 deals in India. Globally, its asset management business provides investment management and advisory services to institutional clients, financial intermediaries, private clients and investment vehicles.

Read more in The Business Standard article.

Hathway buys 39% in ING Vysya MF

Hathway Investments, a company owned by the Rajan Raheja group, has bought out ING Vysya Bank’s entire 39% stake in ING Vysya Mutual Fund for an undisclosed sum.

Following the deal, ING will hold 42.5% in the fund, to be renamed ING Mutual Fund, Hathway 39%, and existing Indian shareholder—Kirti Equities—will retain 18.5%. The asset management company’s (AMC) total assets under management as on March 31, ‘07, were close to Rs 3,630 crore.

For the year ended March ‘06, the AMC had reported a net loss of Rs 21 crore. This could have depressed the valuation of the fund house, which usually ranges from 4-6% of assets. Hathway, which earlier held a 25% stake in Franklin Templeton, is estimated to have pocketed around Rs 300 crore from the sale of its stake.

Read more in The Times of India article.