Goldman Sachs to Acquire India?s Benchmark Asset

Goldman Sachs Group Inc. agreed to take over India’s Benchmark Asset Management Co. to expand its presence into Asia’s third biggest economy.


According to Dhirendra Kumar, New Delhi-based managing director at Value Research, the purchase was more a statement of their commitment to India as the New York-based firm did not have an ETF business in any country.


Oliver Bolitho, head of Goldman Sachs Asset Management in Asia said that India was Goldman Sachs’ strategic priority.


In 2007, the bank made its investment in India. Its total investment in private equity has reached about $ 2 billion so far.


The Wall Street bank deferred plans to start mutual fund operations in India. And now the return to India makes sense. Other major funds had their presence in Asia’s third biggest country. In addition, Benchmark Asset Management has some niche products and a good retail base.


Exchange-traded funds are the most popular type of exchange-traded product. They have become more popular all over the world because of their low costs, stock-like features, and tax efficiency.


Mutual-fund assets in India peaked in November 2009. Since then, they have fallen 19 percent.


There has been a significant growth in index and ETF product demand in India. With Goldman Sachs’ global platform and expertise, Benchmark Asset will have a chance to grow further.


Goldman Sachs Asset Management has an experienced team in Mumbai. The team provides research for offshore funds.


Founded in 2001, Benchmark Asset Management is the No.1 Exchange Traded Funds provider by assets and market share. Benchmark Asset Management oversaw 29.35 billion rupees in assets as of Dec. 31.


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