The joint venture between Invesco and Religare Asset Management will be called Religare Invesco Asset Management Company. It will be headed by Saurabh Nanavati, currently chief executive of Religare AMC along with the existing management team, Religare said in a statement.

It comes as the latest move by a global firm to tie up with a local player in order to tap India's nascent asset management and high net worth market. While foreign direct investment laws have relaxed substantially in India, and most sectors are completely open to it, many foreign firms still prefer to go the route of a domestic joint venture which can give them access to established clients and local partners and knowledge.

Earlier this year Japan's Nippon Life bought a 26 per cent stake in Reliance Capital Asset Management, while France's Natixis acquired a 25 per cent holding in IDFC. Banks including Goldman Sachs, BNP Paribas and Deutsche Bank all have Indian joint ventures.

The firm declined to disclose the purchase price.

Fast-growing RAMC has assets of over US$2.6 billion and a presence in 53 cities across the country. Headquartered in New Delhi, the company is listed on the Bombay Stock Exchange and National Stock Exchange. Formed in 2008, it has recorded a fourfold increase in its combined assets under management in the last four years.

It also has a portfolio management service and offshore advisory platform for high net worth individuals. It has achieved financial profitability in its third full year of operations (year ending March 2012).

“Religare’s asset management business has consistently focused on developing its investment capabilities through a well-defined, proprietary investment process both in equity and fixed income," said Shachindra Nath, group CEO. "With a good 3-year performance track record and solid revenue growth, we believe that both our retail and offshore businesses will be propelled to the next level of their growth journey.”

US lender JP Morgan acted as sole financial advisor on the deal.