Private Equity funds ready war chest to help firms skip IBC route

PE funds are cashing in on the new emerging areas of business. However PE funds admit that handling conglomerates needs special expertise and acumen as they are complex deals

Private equity (PE) funds estimate that in the next 18-24 months, Indian conglomerates will require over $100 billion in equity infusion because they are already reeling from debt, which is set to become non- performing loans. 

They are scouting around to sell their non-core businesses so that they can avoid turning to the Insolvency and Bankruptcy Code (IBC).  PE funds also believe that even if banks write off more than half of the $150 billion non-performing loans currently on their books, someone will need to replace the debt with equity to bring the companies back in the black. 

That money,