CPPIB to invest $225m in Bain, Piramal India distress fund

Last year, Bain and Piramal set a target of $1 billion for the vehicle, with each party agreeing to invest an initial $100 million. The International Finance Corporation (IFC) has also committed $100 million through its distressed asset recovery program. Additional capital contributions have come from high net worth individuals and family offices.

India RF was established in 2016 as part of a wave of joint ventures between global PE players and local investors seeking to leverage regulatory moves aimed at helping banks clear their backlogs of non-performing assets (NPAs). Apollo Global Management teamed up with ICICI Bank, Brookfield Asset Management with State Bank of India, J.C. Flowers with Ambit Holdings, Värde Partners with Aditya Birla Group, and Abu Dhabi Investment Authority (ADIA) and Kotak Private Equity.

India RF invests in distressed assets by purchasing existing debt and equity securities through bankruptcy courts or directly from lenders, or through newly issued securities. It looks to take control of these businesses and lead turnaround efforts through recapitalization, restructuring and operational improvement. All sectors other than real estate are eligible for investment.

Last year, India RF injected $156 million into Archean Group’s marine chemicals business. The proceeds were used to refinance existing debt, support the optimization of the company’s plant in Gujarat, and provide working capital to grow market share domestically and across key export markets. Earlier this year, it invested $144 million in pharmaceutical developer Panacea Biotec by subscribing to non-convertible debentures and share warrants.

“Our investment in India RF represents an increase in our credit commitments in India, targeting attractive risk-adjusted returns in the sizeable Indian distressed-credit space,” said John Graham, a senior managing director and global head of credit at CPPIB, in a statement. “Strong partnerships are at the core of how we invest – a strong local operator with active oversight from a trusted global partner will allow us to further increase our investments in India for the long term.”

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• Topics
• South Asia
• Fundraising
• Credit/Special Situations
• LPs
• India
• Distress
• CPPIB
• Bain Capital Asia