Piramal Enterprises Limited and Bain Capital Credit to pursue distressed debt investing in India

Mumbai, August 29, 2016: Piramal Enterprises Limited and Bain Capital Credit have signed a Memorandum of Understanding (MOU) to create a strategic partnership to invest in restructuring situations in India.

Once finalized, the platform will invest capital directly into businesses and/or acquire debt of such businesses to drive sensible restructurings. The sponsors believe that there is over an USD 1 billion investing opportunity in this space over the next few years.

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.

Both Piramal and Bain Capital Credit have significant experience and a long track record in investing. Piramal has over three decades of experience of spotting early trends in investment opportunities, acting decisively and successfully creating value for all concerned shareholders. Bain Capital Credit has invested in this asset class for 15 years in North America, Europe, Asia and Australia.

Shantanu Nalavadi, an experienced investing professional with 25 years of experience in India and currently Managing Partner of Piramal Capital, will lead this strategic partnership.

Ajay Piramal, Chairman – Piramal Enterprises Ltd., said, “We think the recent banking reforms focused on effective and timely resolution of stressed assets, augers well for players like us. The Piramal Group has a unique combination of successful investing and operating experience in 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.”

Jonathan Lavine, Co-Managing Partner of Bain Capital, said, “We’re pleased to partner with the Piramal Group with the goal of investing substantial capital in India. Bain Capital Credit is one of the world’s leading providers of capital for special situations globally, and we’ve steadily built our capabilities in this space in Asia during the past several years.”

Corporate Comm India(CCI Newswire)