Apollo, ICICI to form India distressed asset JV

Aion Capital, the special situations JV that the two firms launched in 2013 and that closed an $825 million fund in 2014, will also be a stakeholder in the new venture, according to a release. Apollo and ICICI plan to establish an asset reconstruction company that will acquire non-performing assets from lenders as well as buying equity stakes in companies, with the goal of revitalizing companies.

India's distressed asset sector has seen a surge in investor interest lately, as regulators and the government indicate increased support for creditors amid a buildup of non-performing loans. A number of PE players have sought to enter the market, including global firms such as TPG Capital and KKR, along with local names like Everstone Capital.

Apollo's involvement in distressed assets goes beyond India; the firm announced a $1 billion partnership earlier this year with the International Finance Corporation (IFC) to invest in non-performing loans in global emerging markets. Both firms will contribute $500 million to the venture, which will concentrate on purchasing debt of households and small and medium-sized enterprises.

ICICI Bank is India's largest private sector lender. It is present in 17 countries and has interests in a range of industries, including insurance companies, brokerage firms and mutual funds. It reported total assets of $139 billion as of March 2016.

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• Topics
• South Asia
• Credit/Special Situations
• GPs
• India
• Apollo Global Management
• Aion Capital Partners
• Distress