Bain & Piramal to launch a $1-bn fund to acquire stressed assets in India

World Bank investing arm IFC to put $100 million in the new fund

India Resurgent Fund, a Cayman Islands limited partnership and a joint venture between Bain Capital Credit (Bain) and Piramal Enterprises (Piramal) is set to launch a $1-billion fund for investing in distressed assets in the country.

The fund’s size is expected to be $1 billion. International Finance Corporation (IFC), the investing arm of the World Bank, is planning to put around $100 million in the new fund, alongside the sponsors’ investment of $200 million; the rest will come through fundraising, according to IFC.

The two Sponsors of IndiaRF, established in 2016 and headquartered in Mumbai, have an equal commitment of $100 million each, with the ability to provide additional funds over and above the commitment as needed. IFC is playing the role of an anchor investor, helping mobilise capital from the private sector and contributing to the structuring of the fund while also providing its stamp of approval.

The fund seeks to resolve corporate distressed assets (DA) in India by primarily making controlled investments. The project is expected to revitalise a number of distressed companies, and provide capital relief to banks, helping resolve NPLs in India. It will support the implementation of the new regulatory framework and contribute to a more robust DA market, allowing banks to increase lending.

Founded in 1984, Bain is one of the world’s leading private multi-asset alternative investment firms with assets under management of over $95 billion currently. It has 950 employees across offices in the United States, Europe, Asia and Australia. Jonathan Lavine and John Connaughton are its co-managing partners, and it also has over 100 managing directors.