Principal Financial looking to acquire AMC in India

Principal Financial Group, a leading US based financial group is looking to acquire an asset management company (AMC) in India as it wants to scale up its fund unit operations in the high-potential market, reports Business Standard.

Investment bankers have already been told to look out for possible acquisitions especially those with large equity assets. The company feels that current market situation is best time to do an acquisition because of lower valuations commanded by the company.

Principal Financial has three way joint venture with Punjab National Bank and Vijaya Bank, managing about Rs 70 billion.

Since January, when the stock markets started losing steam, the Indian mutual fund industry has found itself losing their average assets under management (AAUM) every month.
 
Due to current financial market turmoil a large number of smaller fund houses valuations have taken a serious hit. Earlier Lotus Mutual Fund was acquired by Reliagre Aegon.

Source: My Iris