Prudential Financial Inc.’s investment-management subsidiary agreed to buy a unit from Deutsche Bank AG to expand in India.
The unit had average assets under management of more than $3 billion in the second quarter, the division of Newark, New Jersey-based Prudential said Friday in a statement that didn’t disclose terms.
Prudential, the second-largest U.S. life insurer, has been seeking to bolster its investment-management business to boost fee income, adding talent from firms including Goldman Sachs Group Inc. and BlackRock Inc. The insurer hired David Hunt from McKinsey & Co. in 2011 to run the operation, and he helped build assets under management to more than $940 billion from about $580 billion.
“Deutsche Bank’s highly respected investment and client service teams complement the strong team we already have in place to serve new and existing clients, as we continue to build our business across India,” Hunt, chief executive officer of Prudential Investment Management, said in the statement.
Deutsche Bank, Germany’s biggest lender, is seeking to scale back some businesses amid a management shake-up. New co-CEO John Cryan replaced Anshu Jain, and will take over as sole CEO when Juergen Fitschen steps down in May.
Selling the asset-management unit to Prudential fits the strategy of “focusing on our core businesses where we can achieve a leadership position,” Ravneet Gill, CEO of Deutsche Bank Group India, said in a separate statement Friday. “We remain absolutely committed to further investment and development of our business here.” A spokeswoman for Deutsche Bank said the buyer will retain the staff.
Prudential is among global insurers pushing into emerging markets to cater to a growing population of middle-class and wealthy customers. Japan’s Nippon Life Insurance Co. agreed in November to increase its stake in the fund-management unit of India’s Reliance Capital Ltd.