Private equity(PE) firms who have been largely focused on providing growth capital in India are now eyeing distressed firms, which has been a domain of the Asset Reconstruction Companies (ARCs). While some of the PE players such as Vision Global, Eight Capital and ClearWater have specialised funds, which are targeting distressed assets, other PE firms are also looking to invest in such companies during these troubled times.
Vision Global, which recently entered India, is looking to invest out of it $200-million Asian fund. Independent estimates peg the total value of the country’s distressed assets at around $60 billion.
While fund managers say there is still lot of opportunity to invest in growing companies besides distressed firms, the slowdown in the Indian economy coupled with stock market crash early this year has already affected PE deal activity in the country. There has been a decline of more than 50% in the value of PE deals in India with only 46 PE deals worth $1.8 billion so far this year as compared to $6.9 billion in the corresponding period last year.
Read more in The Economic Times article.
Showing posts with label Distress Fund. Show all posts
Showing posts with label Distress Fund. Show all posts
Monday, August 25, 2008
Wednesday, April 16, 2008
Vision Global plans $200-million distressed debt fund
Vision Global Investments is looking at launching a $200 million distressed debt fund in the near future. The move comes at a time when a number of other funds in this space are active in India like Clearwater, ADM Capital, WL Ross and DE Shaw.
With the fall in markets and on the back of fears of a downturn in Asian economies, a host of funds are launching distressed funds targeting Asia. Most of the new distressed funds are targeting companies in China, India and Korea.
In case of India, some of them would be BIFR cases or where they have gone through the corporate debt restructuring (CDR) mechanisms. These funds normally takeover the debt from the banks and restructure it through a mix of debt and equity.
Vision Global had recently announced the launch of a $1billion India Infrastructure-focused fund called ‘Vision Global India Infrastructure Fund’. The fund would have its first close by May-end this year and is looking to raise $300 million in its first round. It is looking at investments of $25-75 million through this fund in verticals like roads, airport, ports, urban infrastructure and logistics in the infrastructure space. The fund is expected to provide an average 20-25% return on investment per annum.
Read more in The Economic Times article.
With the fall in markets and on the back of fears of a downturn in Asian economies, a host of funds are launching distressed funds targeting Asia. Most of the new distressed funds are targeting companies in China, India and Korea.
In case of India, some of them would be BIFR cases or where they have gone through the corporate debt restructuring (CDR) mechanisms. These funds normally takeover the debt from the banks and restructure it through a mix of debt and equity.
Vision Global had recently announced the launch of a $1billion India Infrastructure-focused fund called ‘Vision Global India Infrastructure Fund’. The fund would have its first close by May-end this year and is looking to raise $300 million in its first round. It is looking at investments of $25-75 million through this fund in verticals like roads, airport, ports, urban infrastructure and logistics in the infrastructure space. The fund is expected to provide an average 20-25% return on investment per annum.
Read more in The Economic Times article.
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