PE funds stare at capital loss on stressed investee firms

Even as vulture funds eye bargain buys from stressed assets on sale, a set of private equity (PE) funds are staring at capital losses and looking at ways to limit these, as their investee companies are dragged to the National Company Law Tribunal (NCLT) by lenders.
 
Among the ‘Big 12’ companies (unpaid loans so big that the Reserve Bank of India ordered banks to refer these to NCLT for insolvency resolution), PE giant Blackstone Group has exposure to Monnet Ispat. In 2011, the US-based fund had invested around $50 million (Rs 230 crore then) for a 7.12 per cent