Piramal, Bain Capital to float platform for stressed assets

They are going to invest more than $1 bn in the space over the next few years

Ajay Piramal-led Piramal Enterprises and Bain Capital Credit on Tuesday said they will set up a platform to invest in restructuring opportunities in the country.

“Once finalised, the platform will invest capital directly into businesses and/or acquire debt of such businesses to drive sensible restructurings,” a statement from the duo said. The sponsors believe there is a more than $1-billion investing opportunity in this space “over the next few years” the statement added.

The platform’s mandate would be to look at all sectors other than real estate as an asset class. Within these, the platform’s preference will be to invest in businesses that require restructuring and have fundamentally strong growth prospects linked to India’s infrastructure and consumption needs, the release said.

Piramal also has a joint venture with the Canada Pension Plan Investment Board (CPPIB) to lend to real estate developers in the country and is in talks with another Canadian company to provide equity capital to developers.

Recently, Kotak Mahindra has tied up with CPPIB to invest $525 million in stressed assets in the country.

Shantanu Nalavadi, an experienced investing professional with 25 years of experience in India and currently managing partner of Piramal Capital, will lead this strategic partnership.

Ajay Piramal, chairman, Piramal Enterprises, said,  “We think the recent banking reforms focused on effective and timely resolution of stressed assets, augurs well for players like us. The Piramal Group has a unique combination of successful investing and operating experience in diverse set of businesses. In addition, given our strong relationships and credibility with bankers, entrepreneurs and regulators, we are well-positioned to restructure these assets and play a meaningful role in resolving over-levered capital structures in the country, which in turn would eventually fuel the growth in the economy.”