Bloomberg- Eton Park Capital Management LP, the hedge-fund firm founded by former Goldman Sachs Group Inc. partner Eric Mindich, acquired a stake in Reliance Capital Asset Management Ltd., India’s biggest mutual fund.
Eton Park bought 5 percent of the unit of Reliance Capital Ltd., controlled by Anil Ambani, India’s third-richest man, the Mumbai-based company said in a statement. Eton Park will pay 5.01 billion rupees ($127 million) for the stake, valuing the company at 100 billion rupees.
Mindich oversees $10 billion including stocks and distressed debt as well as private-equity investments in developing countries. Prudential Financial Inc. and Shinsei Bank Ltd. are forming asset-management ventures in India, where record economic growth has driven a doubling in the stock market in a year.
The proposed investment values the money manager at about 13 percent of assets under management, the company said. Reliance Capital Asset’s valuation translates into a price of 400 rupees per share of Reliance Capital.
Reliance Capital shares have risen fourfold this year to a record 2,511.5 rupees today on the Bombay Stock Exchange, valuing the financial services company at $15.6 billion.
Reliance Mutual Fund manages 773 billion rupees, or 14.6 percent of the 5.3 trillion rupees managed by Indian Funds at the end of October, according to data on Bloomberg.
