KKR Indian credit business creates joint venture to back growth

The partnership will help structure businesses in KKR’s portfolio as well as third-party firms.

KKR India Financial Services (KIFS) has agreed to a joint venture to provide business services to help turnaround and restructure stressed companies and to aid companies with latent growth potential.

The venture with Tranzmute Capital & Management will work closely with mid-market companies to help them enhance business strategies, capital structure and improve their organisation and operational capabilities.

It will make use of Tranzmute’s model to help companies achieve growth ambitions by aligning economic incentives with the delivery of business outcomes.

The venture will adopt an open servicing model for third-party businesses as well as select companies with the KIFS credit portfolio.

Tranzmute’s founder Narayan Seshadri will assume the role of managing partner and oversee the day-to-day operation of the partnership, with Tranzmute’s management team brought in to service companies where appropriate.

Commenting on the initiative, Seshadri said: “This partnership enables us to expand our team, bring in highly talented, experienced professionals with entrepreneurial aspirations, and where possible, work with KIFS to extend innovative financing solutions to businesses. Together, we aim to launch a truly unique partnership that provides holistic solutions to businesses across India.”

KIFS and Tranzmute said the deal will enable the KIFS portfolio companies to minimise risks and add further value. It will also present further opportunities for business transformation for mid-market companies looking to scale up and create more robust business models.

The venture is expected to launch in the third quarter of 2018.