Nikko and Ambit plan Asset Management joint venture

Nikko Asset Management Co., Ltd. and Ambit RSM Private Limited have reached an agreement to work towards the establishment of an asset management joint venture between the two companies in India. This marks the first initiative to build an asset management joint venture by a Japanese asset management company and an Indian financial services group in India.

Nikko AM is expected to acquire 74.9% of the ordinary stock of the joint venture company while Ambit will own the remainder. Nikko AM and Ambit have already agreed to many of the key terms of their cooperation and anticipate entering into a definitive agreement in early 2007. The two firms plan to commence the formal licensing process for the joint venture with the Indian financial regulators and plan to rapidly build operational infrastructure in anticipation of the formal launch of investment activities.

Ambit Partner and CEO, Ashok Wadhwa commented that "The concept of growth for Ambit with a collaborative strategy was further emphasized by the partnership with Nikko AM who are the best in class in the asset management business."

With its vast people resources, progressive regulators, favorable demographics and an economy growing more than eight per cent per annum, India is not only an attractive destination for foreign capital in general but also is a promising market for asset management in particular, as per Nikko AM President and CIO Bill Wilder.

Drawing upon Ambit's extensive local market knowledge and distribution reach and utilizing Nikko AM's proven asset management expertise, the two firms seek to build over time a successful domestic asset management business.

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