ICICI Prudential Asset Management Company Limited (ICICI Prudential AMC) is seeking approval from the Competition Commission of India (CCI) to acquire the Alternative Investment Fund (AIF) management and advisory businesses of ICICI Venture Funds Management Company Limited. This move is part of ICICI Prudential AMC’s strategy to consolidate and expand its presence in India’s alternative investment domain. The proposed acquisition includes the investment management business, which manages five Category II AIFs, and the advisory business, which provides non-exclusive investment advice to an offshore investment fund.
The acquisition is expected to deepen ICICI Prudential AMC’s reach in the alternative investment segment, allowing it to gain control over multiple AIF platforms and an established offshore advisory structure. This will enable the company to better serve institutional and high-net-worth investors who are increasingly diversifying into private equity and alternative assets. The transaction is not expected to pose any competition concerns in the Indian market, as the overlap between the existing businesses of ICICI Prudential AMC and ICICI Venture is limited.
The move is part of a broader trend of asset managers consolidating operations to enhance competitiveness and streamline fund management capabilities. The ICICI Group’s strategic realignment reflects this industry consolidation, as financial institutions merge or transfer their AIF and advisory units to optimize regulatory compliance, cost efficiency, and capital allocation. The combination of domestic and offshore advisory functions under one umbrella is expected to enhance operational efficiency and allow for better integration of global best practices.
The proposed acquisition highlights the growing importance of alternative investments in India’s asset management sector. Major financial institutions are realigning their internal structures to improve operational efficiency and expand their product offerings under a unified management framework. The transaction is subject to approval from the CCI, which will assess the overlap between the existing businesses of ICICI Prudential AMC and ICICI Venture. If approved, the acquisition will mark a significant reshuffle within the ICICI Group’s asset management operations, aligning ICICI Prudential AMC’s product portfolio more closely with global investment opportunities.