By Nesil Staney
South Africa’s largest asset manager, $80-billion Sanlam Group, picked up a 23% stake in Shriram AMC for Rs 105 crore on Tuesday to become a co-promoter. Kartik Jain, MD & CEO, Shriram AMC, which has assets of Rs 1,050 crore, tells Nesil Staney that the focus of the fund house will continue to be on first-time mutual fund investors and underserved communities. Excerpts:
How will the AMC utilise the money that has been raised?
It will primarily be used to support working capital requirements and business expansion. We will strengthen our core areas — investment management, product development and talent acquisition.
Why Sanlam?
Sanlam is South Africa’s largest asset manager, managing over $80 billion in assets, with an established track record in fund management. More importantly, it has been our partner across Shriram Group businesses for over two years with a strong cultural fit. So, its direct investment in Shriram AMC is in many ways a natural extension of an existing deep relationship, rather than a new alliance. Sanlam views India as a key growth market and aligns closely with our long-term goals.
Will this partnership help you expand operations?
We remain focused on reaching first-time mutual fund investors and underserved communities. By enabling smaller, sachet-sized investments and leveraging Sanlam’s support, we aim to take mutual funds to a much wider audience. As a group, we already have deep relationships with millions of customers.
Explain the board restructure and shareholding pattern post Sanlam transaction?
The board will be reconstituted to include representatives from Sanlam Emerging Markets (Mauritius) (SEMM), bringing in diverse perspectives and strengthening governance. The revised shareholding structure after the transaction stands like this — Shriram Group: 48.17%, SEMM: 23%, Mission1 Investment (strategic investor): 17.71% and Public: 11.12%. Total promoter shareholding has increased from 62.55% to 71.17%.
What are your business targets after this deal?
Our goal is to grow faster than the industry. With enhanced capital, differentiated products and wider distribution, we aim to sustainably scale our business, expand reach, and become a relevant player in India’s growing asset management market.
What products can emerge from this partnership?
We’re focused on building smarter, more relevant investment products using our quantamental approach — a blend of data and fundamental research. With Sanlam’s global experience, we aim to create more innovative, customer-focused solutions and explore cross-border opportunities.
How do you plan to compete with larger, established players?
Assets of the Indian MF industry grew from Rs 10 lakh crore as on March 31, 2015, to Rs 69.50 lakh crore as on April 30, 2025 — nearly a seven-fold increase. It has enough room for more players. With a strong partner like Sanlam and our differentiated investment approach, we are well positioned to grow faster than the market.
What is your investment strategy?
Our core investment philosophy remains unchanged — we will continue as a quantamental fund house aiming at blending data-driven insights with fundamental research. We aim to strengthen our investment and research capabilities to support growth and deepen expertise. The focus is on enhancing our approach, not changing direction.
What is the strategy for talent acquisition you mentioned?
We will require to hire talent across functions as we grow. Being a part of team Shriram AMC gives an opportunity to be part of our growth story, learn from global best practices and contribute through innovation and empowerment while working with a group that embodies long-term trust.
