Korean Mirae Asset to undergo corporate restructuring to push

In a bid to expand its asset management horizon in the country, South Korea-based Mirae Asset Financial Group is set to undergo corporate restructuring of its India operaion to demerge three of its core activities, a top company official said on Wednesday. The Mirae Asset Global Investments (India), which currently manages assets in excess of Rs 34,000 crore, has mutual fund activity as its mainstay.

Apart from its mutual fund business, the group has two more verticals -- real estate and private equity investments -- in India. "We are in the process of undergoing corporate restructuring, in which a new holding company is likely to be created. The holding company will control three separate entities - mutual fund, private equity (PE) and real estate assets," Mirae Asset Global CEO Swarup Mohanty said.

He was here to launch a new mid-cap fund in the city. The separation will help the Korean group to expand its investment more aggressively. The group already pumped in about USD 100 million in real estate and PE investments in four start-ups including Ola and Big Basket.

"This separation of businesses is expected to be completed in the next 3-4 months," Mohanty said. India is one the few countries, where active fund management is happening and mutual fund assets under management for the company would touch Rs 40,000 crore by December 2019 from Rs 32,000 crore at present, he said.

Mirae Asset Mutual Fund has completed more than a decade of its operation in India but it witnessed rapid growth in the last few years, which is backed by SIP investments by retail investors, Mohanty said. In the New Fund Offer period, the company is expecting to raise at least Rs 500 crore from the new Mirae Asset Midcap Fund that will open from July 8 and close on July 22.