Pramerica to buy out DHFL stake in JV

US financial firm Pramerica is set to acquire DHFL's stake in their 50:50 joint venture asset management company, DHFL Pramerica Asset Managers (DPAM). Both Pramerica Financial and DHFL signed a binding term sheet, which is subject to the signing of a definitive documentation, customary closing conditions, and regulatory approvals. Kapil Wadhawan, Chairman and MD, DHFL, said in a press release: “This is a strategic call by DHFL to focus more on our core business. We firmly believe that this move is in the best interest of all parties and will have a positive outcome for all stakeholders.” Pramerica and DHFL formed the joint venture in 2014. Pramerica Financial is a brand run by US firm Prudential Financial (PFI) and the acquisition of DPAM will make it a wholly-owned business of PGIM, the global asset management business of PFI. Glen Baptist, CEO of PGIM Global Partners, said: “We see tremendous opportunity in the asset management market in India and are very excited to be entering this next phase of growth. “We strongly believe that when combined with the deep expertise and broad capabilities of PGIM, we are well positioned to serve our clients and strengthen our competitive position in India.”