TPG targets India distress

Coulter told Bloomberg that TPG's "single focus" is on India, and that the firm believes India could be its core market as the country's economy grows. TPG brought 65 members of its investment team to India this week to meet policy makers and companies.

The firm is one of several investors eyeing opportunities in distressed assets in India. CPPIB and JC Flowers both recently announced partnerships with local firms to take over and turn around underperforming Indian companies.

Domestic firms have also sensed possibilities in the sector. Edelweiss Asset Reconstruction Company, the distressed asset investor sponsored by Edelweiss, is currently looking to raise INR20 billion ($301 million) from external investors, and Everstone announced earlier this year that it will start a distressed asset vertical run by former Advent International executive Avnish Mehra.

Interest in distressed assets has grown as Indian banks try to reduce their load of non-performing loans, which the Reserve Bank of India (RBI) estimates to total over INR7 trillion nationwide. The RBI and the government are expected to take measures to encourage banks to dispose of these assets this year.

So far TPG has invested $1.5 billion in India. Recent deals include the purchase, along with Tillman Global Holdings, of the telecom tower assets of Reliance Communications. The firm is also an investor in online eyewear retailer Lenskart and microfinance lender Janalakshmi Financial Services.

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• Topics
• South Asia
• Credit/Special Situations
• GPs
• India
• TPG Capital
• Special Situations