CDPQ and Piramal to invest $300m into Indian private debt

The real estate debt platform is the latest addition to CPDQ’s India private credit allocation.

Caisse de dépôt et placement du Québec (CDPQ) and Piramal Asset Management, a subsidiary of Piramal Enterprises, are to launch a $300 million private credit investment platform, according to a statement from both firms.

The platform will target performing private credit opportunities in India and will focus on financing residential developers. CDPQ is contributing 75 percent of the capital; Piramal will commit the remaining 25 percent.

“We are excited to announce the launch of a structured credit platform with our long-term partner and marquee global investor, CDPQ,” said Piramal Group’s chairman, Ajay Piramal, in the statement. “This platform aims to leverage the significant market opportunity for alternative pools of capital to provide valuable solutions in the private credit space.”

Since 2017, the Canadian pension has had a partnership with Piramal in which it has invested $250 million. On the real estate equity side, CDPQ’s real estate subsidiary, Ivanhoé Cambridge, in February 2017 disclosed a commitment of $250 million to a co-investment platform with Piramal to provide capital to residential developers.

CDPQ has been adding to its Indian private credit investments through another partnership with Edelweiss Group, a Mumbai-headquartered financial services provider.

In October 2016, Edelweiss Group signed a four-year partnership agreement with CDPQ. The agreement included a commitment by the Quebec City-headquartered pension of up to $700 million for the restructuring of stressed assets and private debt investment opportunities in India.

As PDI reported, it was confirmed in January 2019 that the pension was acting as an anchor investor in Edelweiss Alternative Asset Advisors’ $1.3 billion distressed debt fund, EISAF II.

Another Canadian pension, Canada Pension Plan Investment Board, in December 2019 disclosed a commitment of $225 million to Bain Capital Credit’s Indian private credit strategy via India Resurgence Fund.

IndiaRF is a distressed investment platform set up by Piramal and Bain Capital Credit. Its investors include International Finance Corporation, other institutions, high-net-worth individuals and family offices.