Tata Capital to raise maiden distress fund

According to Bloomberg, the Tata Capital Special Situations Fund has already attracted five state-run banks as LPs and may be fully subcribed by March.

With India's slowing GDP growth and some of the highest borrowing costs among major emerging economies, domestic companies have struggled to pay debt and raise capital. Loans to the infrastructure and mining industries are said to particularly under duress.

"This is an ideal time to raise money for such a fund," said Mahendra Swarup, president of Indian Private Equity & Venture Capital Association. "One can then be ready as more assets get into trouble and opportunities arise in the next two to three years."

State Bank of India, the country's biggest lender, is planning to sell part of its INR492 billion rupees of non-performing loans loans to boost asset quality. Bad loans at Indian banks widened to 3.25% as of June 30 from 2.94% in March, according to the Reserve Bank of India.

Tata Capital currently manages about $1 billion in four other private equity funds. In November, it teamed up with Power Finance Corp, an Indian power sector financing specialist, to set up a private equity fund with a target of $1 billion to invest in domestic power projects.

 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Credit/Special Situations
• Fundraising
• India
• Tata Capital
• Fundraising