Diversified business group Piramal Enterprises Ltd (PEL) and Bain Capital Credit have come together to create a platform to invest in restructuring areas in India.

The companies believe that there is more than $1 billion investment opportunity in this space over the next few years.

Once finalised, the platform will invest capital directly into businesses or acquire debt of such businesses to drive sensible restructuring.

“We think the recent banking reforms focused on effective and timely resolution of stressed assets, augers well for players like us. The Piramal Group has a unique combination of successful investing and operating experience in diverse set of businesses,” said Ajay Piramal, Chairman of PEL.

“In addition, given our strong relationships and credibility with bankers, entrepreneurs and regulators, we are well-positioned to restructure these assets and play a meaningful role in resolving over-levered capital structures in the country, which in turn would eventually fuel the growth in the economy,” he added.

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.

Piramal has more than three decades of experience of spotting early trends in investment opportunities, acting decisively and successfully creating value for all concerned shareholders. Bain Capital Credit has invested in this asset class for 15 years in North America, Europe, Asia and Australia.

Shantanu Nalavadi, currently Managing Partner of Piramal Capital, will lead this strategic partnership.

rajesh.kurup@thehindu.co.in

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