Piramal Enterprises and Bain Capital Credit have inked a pact to create a strategic partnership to invest in restructuring debt.
The platform will invest capital directly into businesses and acquire debt of such businesses to drive restructuring, according to a statement from Piramal Enterprises. The sponsors believe that there is more than $1 billion investing opportunity in this space over the next few years.
“We think the recent banking reforms focused on effective and timely resolution of stressed assets, augurs well for players like us,” said Ajay Piramal, Chairman, Piramal Enterprises Ltd. “The Piramal Group has a unique combination of successful investing and operating experience in a diverse set of businesses. In addition, given our strong relationships and credibility with bankers, entrepreneurs and regulators, we are well-positioned to restructure these assets and play a meaningful role in resolving over-levered capital structures in the country, which in-turn would eventually fuel the growth in the economy.”
The platform’s mandate would be to look at all sectors other than real estate as an asset class.
Within these, the platform’s preference will be to invest in businesses that require restructuring and have fundamentally strong growth prospects linked to India’s infrastructure and consumption needs.
