KKR to buy controlling stake in IARC

Global private equity major KKR is all set to acquire a controlling stake in International Asset Reconstruction Company (IARC). In a structured deal, KKR will infuse Rs 300 crore initially to acquire equity worth 26 per cent in IARC. Later, the stake will be raised to above 50 per cent in the next two years, by roping in an Indian partner whose details are not yet shared.

IARC is registered as a securitisation and reconstruction company with the Reserve Bank of India (RBI). It was promoted in 2002 by Arun Duggal, former managing director and CEO of Bank of America in India. It has assets of about Rs 1,500 crore under management. It has three main sponsors - HDFC Bank, Tata Capital Finance Services and ICICI Bank.