CPPIB to invest $225 m in India Resurgence Fund

Canada Pension Plan Investment Board, through its wholly-owned subsidiary, CPPIB Credit Investments, has committed to investing $225 million in the India Resurgence Fund platform, which is backed by Piramal Enterprises Ltd and Bain Capital Credit.

Targeting ‘distressed’ assets

The fund, which was set up in 2016, is a distressed assets buyout platform. It seeks to make investments in assets which are in distress through the purchase of existing debt and equity securities through bankruptcy courts or directly from lenders, or through newly-issued securities; it is also looking to take control over the turnaround of such assets through recapitalisation and operational improvements.

“Our investment in IndiaRF represents an increase in our credit commitments in India, targeting attractive risk-adjusted returns in the sizeable Indian distressed credit space,” said John Graham, Senior Managing Director and Global Head of Credit Investments, CPPIB.

“IndiaRF has also raised capital from other international high net-worth investors and family offices through the current round,” it said in a statement on Wednesday. It had earlier raised $100 million from International Finance Corporation through its Distressed Asset Recovery Program.

Noting that the resolution of non-performing loans continues to be an important reform agenda for the government, Ajay Piramal, Chairman, Piramal Group said, “Effective resolution would release capital for banks to fund new capital asset formation, which would in turn fuel future economic growth for the country.”

Piramal Enterprises and Bain Capital Credit as joint sponsors have also committed to an initial $100 million each to IndiaRF.