Kumar Mangalam Birla-led The Aditya Birla Capital Limited (ABCL) has formed a joint venture with US-based global alternative investment adviser firm Varde Partners to pursue investments in stressed and distressed assets in India.

Operating through a joint platform, both parties will evaluate investments across sectors, focusing on the acquisition, restructuring and resolution of the substantial supply of non-performing assets in India as well as special situations financings.

A Bloomberg report, citing people familiar with the transaction, said the two companies would invest as much as $1 billion in distressed assets in India.

Big opportunity

Ajay Srinivasan, Chief Executive officer of Aditya Birla Capital Limited said: “The ARC business is a strong addition to the businesses we already have at ABCL. We see a large opportunity in the distressed space, especially in the mid-corporate segment.”

“The expertise and experience of both ABCL and Värde, makes this a strong combination to capitalise on the opportunity that India presents, he added.”

Ilfryn Carstairs, Co-CIO of Varde Partners said: “We see India as a core market for Varde and a critical part of our long-term strategy in Asia. We are particularly excited to partner with an organisation with the quality reputation and established relationships of ABCL to address what we believe will be a very large, multi-year opportunity. “

Varde currently manages about US$14 billion globally, and has invested nearly $500 million in India in the past five years across corporate stressed, distressed, special situations and lending assets.

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