Quantum Advisors on Friday announced that it has reached an agreement with HWIC Asia Fund, an affiliate of Fairfax Financial Holdings, under which HWIC will acquire 49.2% stake in it for an undisclosed amount.
Quantum Advisors advises and manages India allocations for foreign portfolio investors, while its wholly owned subsidiary Quantum Asset Management Company (QAMC) is the investment manager of Quantum Mutual Funds.
Under the terms of the agreement and subject to customary closing conditions, HWIC will acquire shares from an existing financial shareholder and subscribe to new shares issued by Quantum Advisors. Ajit Dayal and IV Subramaniam will not be selling any of their shareholdings in Quantum.
Jimmy Patel, CEO of Quantum Asset Management, said: “The investment by the Fairfax group also allows Quantum Asset Management to ensure that we have the minimum net worth of R50 crore as stipulated by Sebi in May, 2014.
We were given three years to reach that minimum net worth and we will be ahead of the May 2017 deadline. With the minimum net worth issue behind us, we expect a significant acceleration in the growth of the number of investors in the Quantum Mutual Funds.”
Quantum Asset Management started its mutual fund operations in 2006 and has average assets under management of over R612 crore for July-September quarter.
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