Piramal-Backed India Resurgence Fund Gets $225 Million From Canada’s CPPIB
India Resurgence Fund, backed by Piramal Enterprises and Bain Capital, invests in NPAs and counts World Bank’s IFC as an investor.
India Resurgence Fund, a platform for buying out distressed assets, has received $225 million, or about Rs 1,560 crore, from Canada Pension Plan Investment Board.
India Resurgence Fund, which was set up with Piramal Enterprises Ltd. and Bain Capital Credit as joint sponsors, seeks to make investments in assets which are in distress through the purchase of existing debt and equity securities through bankruptcy courts or directly from lenders, or through newly issued securities, according to a statement.
It takes control over the turnaround of such assets through recapitalisation and operational improvements.
India Resurgence Fund had earlier raised $100 million from World Bank’s International Finance Corporation through its distressed asset recovery program.
IFC has played the role of anchor investor for India Resurgence Fund and will use its global expertise, alongside that of CPPIB, to help implement environmental, social and corporate governance standards at India Resurgence Fund, the company said.
The India Resurgence Fund platform has received a commitment of $225 million from Canada Pension Plan Investment Board, through its wholly owned subsidiary, CPPIB Credit Investments Inc, the company said.
"We are pleased to anchor a fund that will have a meaningful impact in the non-performing loan resolution space with a focus on revival and turnaround. We believe that helping to address India's NPL problem will have a very significant positive spillover effect in the economy, including saving and creating jobs," said Mengistu Alemayehu, director (South Asia) at International Finance Corporation.
"Our investment in IndiaRF represents an increase in our credit commitments in India, targeting attractive risk-adjusted returns in the sizeable Indian distressed credit space," John Graham, senior managing director and global head (credit investments) at CPPIB, said. India Resurgence Fund has also raised capital from other international high-net-worth investors and family offices through the current round.
"The resolution of the NPL problem continues to be an important reform agenda for the government of India.... We are delighted that following the initial support from IFC to this platform, CPPIB has also increased its existing association with the Piramal Group and its engagement with India," Piramal Group Chairman Ajay Piramal said.