Apollo, ICICI eye $750m close on India distress fund - report

According to Reuters, ICICI and Apollo have so far raised $675 million from investors including large sovereign and pension funds. The so-called AION Capital fund was first launched in January last year with an initial target of $500 million.

The close comes at a time when the growth in the Indian economy is the slowest it has been in a decade, leaving companies struggling to raise capital. The fund is also reported to be looking at buying into bad loans.

The fund's first transaction came last September when it invested $23 million in Jyoti International, the US subsidiary of India-based Jyoti Structures, which engages in power transmission, distribution and substation-related engineering, procurement and construction (EPC) projects.

Apollo is not the only global firm seeking opportunities in India distress. Only last month, KKR co-founder Henry Kravis said his fund plans to invest in Indian distressed companies through a special situation fund. The Reserve Bank of India said in January that it would encourage private equity firms to play an active role in the stressed assets market to help reduce banks' bad loans.

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• Topics
• South Asia
• Fundraising
• Credit/Special Situations
• India
• Apollo Global Management
• KKR
• Distress
• ICICI Venture Funds Management Company