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Diversified financial services group Edelweiss announced on Thursday it will acquire the Ambit Alpha Fund, an alternative investment fund (AIF) with assets of ₹1,100 crore and the flagship product of asset managers Ambit Investment Advisors. Edelweiss and Ambit did not disclose the size of the deal, which is subject to due diligence and regulatory approvals.
The Ambit Alpha Fund is a category III AIF — a hedge fund that invests in listed equity and derivatives. It caters to high networth individuals and has an impressive track record — a compounded return of 23 per cent since its launch in 2013.
BusinessLine learnt that Vaibhav Sanghavi, MD, Ambit Investment Advisors and fund manager for the Alpha Fund, resigned from the company last week.
The sale of the Alpha Fund to Edelweiss “was not in the works for very long,” Venkat Ramaswamy, Executive Director and Co-Head, Edelweiss Global Asset Management, told BusinessLine . “Rashesh (Shah, CEO of Edelweiss) and I have known Ashok (Wadhwa, Group CEO, Ambit) for very long. Asset management is a big focus area for Edelweiss. We have the in-house capability to run the fund. We acquired Forefront Capital (hedge fund) in 2014. The fund’s assets grew from a little less than ₹150 crore then to a little over ₹1,500 crore now.”
In an emailed statement, Wadhwa, said: “We have decided to divest Ambit Alpha Fund, and believe that the interest of the investors will be best served under a larger and well established asset management platform. We are pleased to have reached an agreement with Edelweiss and are convinced of their commitment to this business.”
This is the second asset management acquisition of Edelweiss in the recent past, following its purchase of JP Morgan’s onshore mutual fund schemes. The new acquisition will further strengthen its ₹35,000-crore global assets management business.
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