South African asset manager Sanlam has entered into a strategic partnership with Shriram Group's business unit, Shriram Asset Management Company (Shriram AMC).

Shriram AMC operates in various financial services, including commercial vehicles, consumer finance, life and general insurance, stock broking, chit funds, and financial product distribution.

Under the deal, Shriram AMC has preferentially allotted 3.89 million equity shares to Sanlam Emerging Markets (Mauritius) (SEMM), resulting in a capital infusion of Rs1.05bn ($12.2m).

This investment grants SEMM a 23% direct stake in Shriram AMC, marking its entry as a co-promoter alongside Shriram Credit Company Limited (SCCL).

Consequently, the total promoter shareholding has risen from 62.55% to 71.17%, prompting a reconstitution of Shriram AMC’s board to include representatives from Sanlam.

The partnership is part of Shriram Group's strategy to enhance its financial services portfolio.

Shriram AMC managing director and CEO Kartik Jain said: “Leveraging its expertise in both quantitative and fundamental analysis, Sanlam will enhance the sophistication of Shriram AMC’s investment processes and help deliver relevant and differentiated investment solutions to the right customer segments.”

In 2022, the group had already secured an investment from Mission1 Investments, which acquired a 23% stake in Shriram AMC.

This latest investment from Sanlam is seen as a continuation of the group's efforts to strengthen its asset management business and create a comprehensive platform for asset management services.

Sanlam Investments CEO Carl Roothman said: “We see India as a strategic growth market, and our partnership with Shriram AMC reflects our commitment to co-creating investment excellence, particularly in emerging markets.

“With over two decades of successful collaboration between the Shriram Group and Sanlam, this partnership builds on a long-standing legacy of trust, and a mutual vision to create impactful investments that benefit society.”

The collaboration between Shriram Group and Sanlam is built on over two decades of joint ventures in various sectors, including financing, life insurance, and general insurance.

In November 2024, Sanlam signed a binding agreement with Ninety One to establish a long-term partnership, making Ninety One the primary active investment manager for Sanlam's single-managed local and global products.

"Sanlam invests in Indian asset management firm Shriram AMC" was originally created and published by Private Banker International, a GlobalData owned brand.