In a significant strategic shift, PGIM Inc., the investment management arm of US insurance behemoth Prudential Financial, is reportedly considering an exit from the Indian asset management landscape. The firm is exploring a potential sale of its wholly-owned subsidiary, PGIM India Asset Management Pvt Ltd., a decade after acquiring the business from Deutsche Bank AG.
A Decade of Struggle Prompts Strategic Review
According to sources familiar with the development, PGIM has engaged the professional services firm EY to advise on the sale process. The move comes after the parent company evaluated the growth trajectory of the Indian unit, which manages assets worth approximately 266 billion rupees ($3 billion). Insiders indicate that the business has seen little meaningful expansion in recent years, stagnating in a rapidly growing market.
The contemplation of a sale underscores a challenging journey. PGIM purchased Deutsche Bank's India asset management business back in 2015, aiming to capitalize on the country's financial growth. However, the subsidiary has consistently struggled to turn a profit. Its after-tax losses swelled to more than 235 million rupees in the financial year ended March 2025, as per its annual report. In a bid to potentially reverse fortunes, the firm appointed a new chief executive officer in July 2025.
Diverging Paths in a Hot Market
PGIM's potential exit strategy marks a stark contrast to the aggressive bets being placed on India by other global financial giants. The firm's business approach has differed markedly from its peers, such as BlackRock Inc., which is investing heavily to tap into the nation's rising equity culture and burgeoning investor base.
The Indian asset management industry is witnessing robust activity and consolidation. For instance, last year, WestBridge Capital acquired a significant 15% stake in Edelweiss Asset Management Ltd., supporting its national expansion plans. Against this backdrop of bullish sentiment and investment, PGIM's review of its Indian operations highlights the competitive intensity and the difficulty of achieving scale.
What a Potential Sale Means
A successful sale would allow PGIM, a global investment firm with around $1.5 trillion in assets under management worldwide, to reallocate resources from a persistently loss-making venture. The unit offers products across fixed income, equity, alternatives, and real estate.
The development signals a period of recalibration for foreign asset managers in India. While the long-term potential of the Indian market remains largely undisputed, achieving profitability and meaningful market share requires deep commitment, local adaptation, and sustained investment. PGIM's experience underscores that a global brand and legacy alone are not sufficient to win in this complex and competitive arena.
Both PGIM and EY have officially declined to comment on the speculation, citing the private nature of the deliberations.
