At present, the PAG manages assets of over $20 billion. Photo:
Mumbai: Hong Kong-based alternative investment firm PAG, formerly Pacific Alliance Group, is looking to enter India. The firm is preparing to set up its leadership team, said two people close to the development, on the condition of anonymity.
Besides private equity, PAG invests across diversified asset classes, including real estate, distressed assets, pre-IPO financing, asset-backed lending and investment in high-yield bonds, among others. At present, the firm manages assets of over $20 billion.
“The firm has started reaching out to people for setting up its leadership team. It is looking to venture into India soon,” said one of the people cited above.
Email queries to a PAG spokesperson did not elicit any response till press time.
In September 2017, Mint had reported that PAG, along with US-based Cerberus Investment Management, was exploring investment opportunities in the distressed assets space in India.
Following the implementation of IBC, stressed assets specialists are looking for opportunities across businesses–
Following the implementation of the insolvency and bankruptcy code (IBC) in 2016 stressed assets specialists are looking for opportunities across businesses.
Both domestic and overseas funds are increasingly setting up shop independently, or as strategic partners, to invest in debt-laden firms. Several funds are also working with operational partners, as the IBC regulations continue to evolve.
So far, the lenders of debt-laden companies have given preference to strategic resolution applicants over financial entities.
For instance, Bain Capital Credit had partnered with Piramal Enterprises to set up a $1 billion distressed assets fund last year.
In May, Mint had reported that Aditya Birla Capital was in talks with investment firm Varde Partners to set up an alternative investment fund focused on stressed assets.
SSG Capital Management, Bain Credit, Lone Star Funds and Oaktree Capital are also looking to invest in Indian distressed assets space.
“We will see more deals happening in the pre-admission stage. The IBC, as it evolves, will lead to more proactive action being taken by firms and by the lenders,” said Mahesh Singhi, founder and managing director, Singhi Advisors