DWS in Talks with Nippon Life for India Asset Management Joint Venture
Deutsche Bank’s investment arm DWS is in early-stage talks to form an asset management joint venture in India with Japanese insurer Nippon Life, four people familiar with the matter told Reuters. The negotiations, which are expected to be lengthy due to regulatory hurdles, come as DWS seeks to expand its presence in Asia.
DWS, with over 1 trillion euros ($1.13 trillion) in assets under management, is one of Europe’s largest fund managers. Nippon Life, Japan’s largest insurer, has been on an international acquisition spree. The discussions follow the breakdown of talks for a separate DWS joint venture in China, which was a setback for Deutsche’s Asia ambitions.
The potential joint venture is part of a growing trend of international financial firms focusing on India, the world’s most populous country with a growing middle class. Last year, Indian regulators gave initial approval for a mutual fund business between Jio Financial Services, owned by billionaire Mukesh Ambani, and BlackRock, the world’s largest asset manager.
Nippon Life and DWS already have a relationship, with the insurer owning 5% of DWS and the two collaborating in areas such as distribution. DWS CEO Stefan Hoops recently expressed openness to inorganic growth after years of recovery from greenwashing accusations, stating that he expects the next few months to be ‘quite interesting’ for the company in Asia.
The companies could leverage recent regulatory changes in India that allow fund houses to launch passive-only funds through a spin-off entity with easier compliance requirements. This could enable DWS and Nippon Life to launch a jointly owned company for ETFs and passively managed funds.
DWS and Nippon Life declined to comment on the talks. The development comes as DWS aims to expand in Asia, while Nippon Life continues its international expansion.
