Ajay Piramal-led Piramal Enterprises and private equity major Bain Capital on Tuesday entered into a strategic partnership to invest in distressed assets in India. Once finalised, the platform will invest capital directly into businesses or acquire distressed debt from lenders, the market size of which, according to both companies, will be $1 billion in the next few years.
The platform’s mandate would be to look at all sectors other than real estate as an asset class. Within these, the platform’s preference will be to invest in businesses that require restructuring and have fundamentally strong growth prospects linked to India’s infrastructure and consumption needs. Shantanu Nalavadi, currently co-head of Piramal’s Structured Investments Group, will head the strategic partnership, a company statement said.
Piramal Enterprise is understood to be in talks with several large PE funds to set up a distressed assets fund. The company, according to sources, has applied for asset reconstruction company ( ARC) licence and is currently waiting the RBI’s approval. In January, Piramal had tied up with Nirmal Gangwal’s Brescon Advisors, which specialises in corporate debt restructuring, to manage a distressed assets fund but called it off in June.