Nippon Life India Asset Management (NAM India) has signed a non-binding MoU with European asset manager DWS to explore a strategic collaboration in the alternative investment fund (AIF) space. As part of the proposed arrangement, DWS intends to acquire up to a 40 per cent stake in NAM India’s AIF subsidiary through a fresh issue of shares.

The move follows approval from NAM India’s Board of Directors at its meeting held on November 13.

Under the proposed arrangement outlined in the MoU, DWS intends to acquire a minority stake of up to 40 per cent in Nippon Life India AIF Management Ltd (NAIF), a wholly owned subsidiary of NAM India. 

The stake is proposed to be acquired by subscribing to a fresh issuance of equity shares by NAIF. The companies intend to jointly develop and build a leading AIF franchise in India as part of this strategic step.

NAM India and DWS also plan to work closely in additional areas beyond AIFs. According to the MoU, the wider collaboration will include cooperation in passive investment products and in global distribution. The specifics of the broader engagement will be determined as discussions progress.

The MoU records the preliminary understanding between the parties and is non-binding. The proposal is subject to completion of a due diligence exercise, execution of definitive agreements and receipt of necessary regulatory and other approvals.

NAM India communicated that the document serves as a foundation for further discussions with respect to the strategic alliance. The company has formally notified stock exchanges of the development, in line with disclosure requirements.

Once definitive agreements are executed and approvals are obtained, the partnership structure and investment details will become clearer. For now, the MoU marks the beginning of exploratory engagement between NAM India and DWS on the AIF platform and related collaborative areas.