Yes Bank has signed a definitive agreement with GPL Finance and Investments Ltd to sell 100% stake in Yes Asset Management (India) Ltd (YESAMC) and Yes Trustee Limited (YTL), both wholly-owned subsidiaries of the restructured bank.
YESAMC is the asset management company of YES Mutual Fund and YTL is the trustee of YES Mutual Fund. Upon completion of the transaction, YESAMC and YTL will cease to be subsidiaries of the bank, which will exit its mutual fund business.
In a regulatory filing, Yes Bank said that White Oak Investment Management Private Ltd owns 99% of GPL Finance. The ultimate beneficial holder of the purchaser is Prashant Khemka who owns 99.99% of White Oak Investment Management, it said.
"The Bank has on 21st August 2020 executed a definitive agreement for the sale of 100 per cent of the equity shareholding of YES Asset Management (India) Ltd and YES Trustee Ltd, both wholly owned subsidiaries of Yes Bank Ltd to GPL Finance and Investments Ltd," it said.
Khemka is a former Goldman Sachs fund manager having worked in the company from 2007 to 2017. He worked as the chief investment officer and lead portfolio manager of GS India Equity at Goldman Sachs Asset Management after which he reportedly founded White Oak as a boutique investment management company in 2017.
The mutual fund business has assets under management of over Rs50 crore. As per regulatory filings, YESAMC contributed FY20 Rs 3.3 million in revenue and Rs 497 million in net worth, though its contribution as percentage of the bank’s revenue or net worth is negligible.
The bank has said that YTL, on the other hand, had no revenue and net worth contribution.
The transaction is subject to requisite regulatory approvals from the regulatory authorities and the bank expects the deal to complete in the period of 8-12 months.