Eight Capital, a distressed and special situations investment manager focused on investing in India, and Emso Asset Management, a London and New York based emerging markets fixed income asset manager, announced today that they have acquired Ambit Capital's stake in Ambit Flowers Asset Reconstruction Company, to be renamed J.C. Flowers Asset Reconstruction Company ("JCFARC") upon completion of the transaction.
The JCFARC will be managed by Eight Capital's team in Mumbai and intends to purchase non-performing loans from Indian Banks in target companies that the team believes have the potential to be turned around through balance sheet restructuring and infusion of fresh capital. JCFARC anticipates acquiring loans with its own capital as well as on behalf of investors.
J.C. Flowers and Co., a leading private investment firm specializing in the financial services industry, and Ambit launched the ARC in 2016 to invest in the Indian distressed asset market. J.C. Flowers will become the largest shareholder after the transaction closes.
"I am excited to partner with J.C. Flowers and access the firm's specialized knowledge and deep relationships in the financial services industry across the globe. J.C. Flowers has an established past track record of turning around troubled financial firms with large pools of NPLs which we expect will translate into a substantial advantage for our business," said Ravi Chachra, Chairman of Eight Capital.
"In addition, Emso will bring its vast experience of investing in emerging markets across geographies and sectors to strengthen the partnership", he added.
"We look forward to continuing our longstanding relationship with the principals of Eight Capital and establishing a new relationship with J.C. Flowers in what we believe to be one of the timeliest investment opportunities within emerging markets today," said Rory McGregor, Chief Operating Officer of Emso Asset Management.
"The senior team at Emso has on average more than 20 years of experience deploying capital in the emerging markets fixed income space and we are fortunate to partner with these two experienced firms to develop a new investment platform in one of the fastest growing emerging markets", he added.
"With more than 10 years of experience investing in the Indian credit markets, Eight Capital's deep domain knowledge and strong relationships with market participants make them an ideal local partner for the JCFARC," said Thierry Porte, Managing Director at J.C. Flowers.
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