August 30, 2018
Aditya Birla Capital Limited (ABCL) and Värde Partners (Värde), announced an exclusive strategic partnership 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. Given the current landscape and further prospects in asset reconstruction in India, ABCL and Värde believe there is an attractive pipeline for strong capital deployment opportunities over the next several years.
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’s deep, global restructuring expertise developed over the firm’s 25-year history will be complemented by Aditya Birla’s strong team and experience in Indian credit and asset markets.”
On receipt of necessary approvals, both parties will jointly own and control the platform, which will leverage ABCL’s expertise in the financial services domain, the Aditya Birla Group’s wide operational experience across sectors and Värde’s established capabilities in global credit and value investing strategies. Värde currently manages about US$14 billion globally, and has invested nearly US$500 million in India in the past five years across corporate stressed, distressed, special situations and lending assets. With regional headquarters established in Singapore in 2008, Värde expects to open its fifth Asia office in Mumbai later this year, subject to regulatory approvals.
About Aditya Birla Capital Ltd.
Aditya Birla Capital Limited (ABCL) is the holding company of all the financial services businesses of the Aditya Birla Group. With a strong presence across the life insurance, asset management, private equity, corporate lending, structured finance, project finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance business, ABCL is committed to serving the end-to-end financial services needs of its retail and corporate customers. Anchored by more than 16,000 employees, ABCL has a nationwide reach and more than 2,00,000 agents / channel partners.
Aditya Birla Capital is a part of the Aditya Birla Group, a US$44.3 billion Indian multinational, in the league of Fortune 500. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 nationalities, the Aditya Birla Group operates in 35 countries across the globe.
About Värde Partners
Värde Partners is an approximately US$14 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, transportation and infrastructure. Värde Partners sponsors and manages a family of private investment funds. Founded in 1993, Värde Partners has regional headquarters in Minneapolis (USA), London and Singapore.