Bajaj Finserv and its insurance partner Allianz are looking to buy homegrown mutual fund Quantum, highlighting the consolidation trend in the mutual fund industry. The proposed deal would mark the entry of the Pune based financial services firm and the UK-based insurer into the highly fragmented and competitive industry marked by wafer-thin margins.
People familiar with the situation said the two companies are in advanced stages of talks to acquire the six-year-old fund house, with a direct-to-investor business model.
Typically, valuations in large deals are based on a percentage of total assets under management (AUM). But this would possibly be a bilateral deal with valuation based on a premium to the networth (of around Rs 20 crore), said an investment banker involved with past transactions in the mutual fund industry.
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