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Axis Asset Management Company and Inversion Advisory Services, promoted by telecommunications veteran Akhil Gupta, have announced a partnership to invest in underperforming companies.
They plan to raise upto ₹ 3,500 crore for the proposed new fund under its Alternative Investment Fund ( AIF) registration. The Fund will seek to acquire controlling stake primarily in pre-stressed, stressed, distressed and other underperforming assets.
Stressed companies
The partnership seeks to help fill the gaping shortage of high quality equity capital in the country’s stressed company ecosystem, which has seen a number of debt offerings but lacks strong equity investors with operational skill set. An application has been filed with SEBI seeking registration of the proposed fund.
Commenting on the partnership, Chandresh Nigam, MD & CEO, Axis AMC said, “With our entry into the exciting space of turnaround investing, we believe we have created a unique proposition for investors looking to participate and benefit from the India growth story. We are also extremely excited to partner with Inversion and Akhil on this journey – their expertise will be invaluable in making this a success”.
Akhil Gupta, Chairman, Inversion Advisory Services said , “ Inversion is delighted to partner Axis AMC on this exciting journey to turnaround underperforming assets. The combination is ideal to not just exploit large untapped potential in this space but also serve an important social purpose in saving large number of jobs and capital already invested by shareholders, lenders and vendors in such companies” .
The partnership seek to take advantage of the fund management expertise of Axis AMC and operational and turnaround expertise of Inversion to offer an unique platform for investors.
It will be a first of its kind offering that will look to take controlling equity stakes in underperforming companies before working with them to turn them around. It will thus help such quality companies with strong performance and operational capabilities which may be facing temporary headwinds owing to special circumstances including unsustainable debt, temporary disruptions, to get on a credible turnaround path.
Axis AMC will be the Investment Manager of the fund. The Investment Manager will employ a team to evaluate potential opportunities. Inversion would provide management support to acquired companies with its team of functional and industry experts.
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