U.S. investment fund management firm T. Rowe Price is expanding into India, buying a chunk of money manager UTI Asset Management Co.

Baltimore’s T. Rowe Price Group announced that it is taking a 26% stake from existing shareholders in UTI Asset Management Co. Ltd. and UTI Trustee Co. Pvt. Ltd. for approximately US$138 million. The transaction is subject to regulatory approval, and is expected to close in the fourth quarter.

UTI is the fourth largest asset manager in India with approximately US $17.2 billion in average assets under management in October, which represents a 10.1% market share of the mutual fund industry in India.

“This provides T. Rowe Price with an opportunity to participate directly in the tremendous growth potential of India’s asset management industry. India’s economic growth rate is second only to China’s among large economies and its working-age population is expanding rapidly. The country’s high savings rate and demographics favor strong growth in mutual fund investing over time,” said James Kennedy, chief executive officer and president of T. Rowe Price.

IE