Bain Capital, Piramal JV to garner $100m from IFC

The implementation of the new insolvency and bankruptcy code is among factors boosting Indian non-performing asset investments.

The India Resurgence Fund (India RF) is awaiting approval for a $100 million anchor equity investment from the International Finance Corporation (IFC), the private investment arm of the World Bank Group, a source from India RF confirmed with PDI.

The fund is a joint venture between Bain Capital Credit, the credit arm of the Boston-headquartered private multi-asset alternative investment firm, and Piramal Enterprises, a Mumbai-headquartered conglomerate led by billionaire Ajay Piramal.

Both Bain and Piramal have made an equal commitment of $100 million each, with the ability to provide additional funds, according to the IFC’s disclosure published on Monday.

The investment strategy involves acquiring Indian distressed corporate assets. It also plans to invest in distressed assets for control.

Shantanu Nalavadi, a managing director of India Resurgence Fund, is overseeing the fund’s investment activities, according to the source from India RF.

He was previously a co-head at the structured investment group of Piramal Enterprises, overseeing more than $350 million in assets under management, according to a public disclosure from the firm.

The new regulatory framework, including the Insolvency and Bankruptcy Code, is a factor that appeals to foreign institutional investors as the court process has become more transparent, according to Nitin Jain, a CEO of global wealth and asset management at Edelweiss Financial Services.

“This is the first time that India has a more comprehensive bankruptcy framework,” he told PDI.