Goldman Sachs Asset Management India is likely to seal the deal at a valuation of 4-4.5% of the assets under management of Benchmark.
Benchmark Asset Management, which manages assets worth over $667m, is a 10-year-old fund manager whose main portfolio is gold exchange-traded funds.
Citing a person with direct knowledge of the development, the Mint reported that the deal may be clinched at a valuation of 4-4.5% of the assets under management.
The acquisition is expected to consolidate Goldman Sachs’ position in Indian mutual fund industry following the entry load ban that has hurt the profits of asset management companies (AMCs).
Goldman Sachs Mutual Fund entered the Indian asset management market in 2010.
If the talks succeed, it will be the first instance of an index fund-heavy AMC being bought out by any fund house in India.
