Reliance mutual fund sells 5% stake to Eton Park

MUMBAI: Reliance Capital Asset Management, controlled by Anil Ambani, has sold a 5% stake to Eton Park Capital Management in a deal that for the first time puts a value on India’s largest mutual fund.

US-based Eton Park will pay $127 million for the stake in Reliance’s mutual fund, valuing it at Rs 100 billion, and provide capital for the group as it looks to launch an overseas fund aimed at luring foreign institutional investors.

A senior Reliance official said, “India is super hot and at one level there are non-resident Indians who should be investing in our products in a much greater way, which again requires us to have an overseas presence. And again it’s not just restricted to NRIs, we can target international investors of any shape or hue.”

Reliance said the investment by Eton Park, a hedge fund founded by former Goldman Sachs Group partner Eric Mindich, valued the mutual fund at 13% of assets under management, twice the valuation of previous such deals in the industry.

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