Piramal to merge private equity with NBFC business

The combined entity has deployed Rs 2,400 cr over the last three months

Piramal Capital, the investment arm of Ajay Piramal-led Piramal Group, has combined its real estate private equity fund management business (Indiareit) and NBFC (Piramal Finance) into an integrated vertical.

The integrated entity, Piramal Fund Management, will expand company's exposure to real estate across the entire capital stack such as private equity, structured & mezzanine equity, structured debt, senior secured debt and construction finance. Currently, Piramal Fund Management manages/advises funds over Rs 7,550 crore on the equity side, which includes five domestic funds, one offshore fund, three third-party mandates and a separate account with Canada Pension Plan Investment Board (CPPIB), said a company statement.

Additionally, it has disbursed another Rs 3,000 crore as part of a proprietary debt loan book. The combined team will have 60 professionals. The combined entity has deployed another Rs 2,400 cr over the last three months

In February, Business Standard had reported about the restructuring plan of Piramal Capital.

Ajay Piramal, Chairman, Piramal Enterprises said, "Integrating the debt and equity platform into a combined entity will ensure that we are best positioned to gain valuable information, skills and insights - all of which will enhance our ability to forge lasting relationships with our development partners."

Khushru Jijina, Managing Director, Piramal Fund Management said, "This reorganisation will facilitate engagement with our development partners to meet their funding requirements across the entire lifecycle of a project. We are uniquely capable of catering to the entire capital stack - right from early stage equity to late stage debt and are therefore able to act as perpetual providers of capital within this space."

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