New Delhi, Nov. 10 -- ASK Investment Managers' acquisition of Pune-based SageOne Investment Managers brings together two fund houses with contrasting fortunes. While SageOne has built a sizeable alternative investment business, ASK is looking to strengthen its investment performance. But the deal raises a larger question: why sell a business that has already achieved meaningful scale?

Founded more than a decade ago, SageOne has built a strong foothold in alternative investments, managing around Rs.9,000 crore in assets, a notable achievement in a sector where scale is difficult to attain. As of September, just 99 of India's 538 portfolio managers managed more than Rs.1,000 crore in assets, according to data from the Securities and Exchan...