Aditya Birla Capital Limited (ABCL) has formed a joint venture with US-based global alternative investment adviser firm Värde Partners (Värde) 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.

Ajay Srinivasan, Chief Executive of ABCL 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. One of the things that we bring to the table as a Group, is that we understand how to run many businesses. We are looking at leveraging this skill set as we enter this new business. Thus, our decision to enter into a joint venture with Värde Partners, who bring restructuring expertise to augment our core strength. The expertise and experience of both ABCL and Värde, makes this a strong combination to capitalise on the opportunity that India presents.”

Ilfryn Carstairs, Co-CIO of Värde Partners said, “We see India as a core market for Värde 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. “

Värde 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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