Established in 2016, IndiaRF is a joint venture between Bain Capital Credit and Piramal Enterprises (together the sponsors).
World Bank investment arm International Finance Corporation has decided to make an equity investment of $100 million in India Resurgent Fund, LP, a Cayman Islands limited partnership. Established in 2016, IndiaRF is a joint venture between Bain Capital Credit and Piramal Enterprises (together the sponsors). The two sponsors have made an equal commitment of $100 million each, with the ability to provide additional funds over and above this commitment, as needed. The fund seeks to resolve corporate distressed assets (DA) in India by primarily making distressed to control investments. The fund size is expected to be $1 billion, in which IFC will invest up to $100 million equity alongside the sponsors’ investment of $200 million, while the remainder will be raised through fund raising.
The proposed project/fund is expected to revitalise a number of distressed companies and provide capital relief to banks, helping resolve NPLs in India. IndiaRF’s ability to turnaround these situations will help preserve jobs. The project will support the implementation of the new regulatory framework and contribute to a more robust DA market, allowing banks to increase lending. IFC will be playing the role of anchor investor, helping mobilize capital from the private sector and contributing to the structuring of the fund, while providing its stamp of approval. IFC will also provide a unique combination of deep local knowledge and presence in India across sectors, as well as an extensive and successful track record in DA investments globally.
IFC will support IndiaRF to codify and implement an E&S management system for its operations in accordance with IFC’s E&S Performance Standards, assisting with the development of proper E&S risk assessment, mitigation and monitoring procedures. According to sources, Piramal Enterprises has also set up an asset reconstruction company (ARC) separately with Bain Capital Credit India Investments. The sources further said that some of the IFC’s recent LP commitments in India including Kedaara Capital’s second fund and IndoSpace Logistics Parks’ third fund. IFC said to have also backed Lighthouse’s third India mid-market PE fund, besides supporting IDG Ventures, Stellaris Venture Partners and pi Ventures among the VC funds.