Mumbai, Jan 31 (PTI) Debt restructuring and turnaround specialist Brescon & Allied Partners is looking to launch an alternative investment fund (AIF) with a corpus of USD 250-300 million and is in initial discussions with domestic and global investors to raise the money.
Mumbai-based Brescon, founded by former investment banker Nirmal Gangwal, claims to be the first and the largest institutional player in stressed assets advisory business. It entered the space over two decades ago offering financial and corporate restructuring, recapitalisation and debt refinance.
It also offers divestment and M&A advisory, structured finance and insolvency services. Of late, it has also started offering structured credit, special situation, structured credit and recapitalisation finance services.
In the past few years, it had completed two large transactions worth USD 500 million involving Jayaswalneco Industries and Panacea Biotec. In 2016, Brescon had tied up with billionaire Ajay Piramal-led Piramal Enterprises to float a Rs 6,000-crore fund.
Brescon is planning to launch an AIF with at least USD 250-300 million or even a bigger corpus and is currently working on the strategy, objective and mandate of the fund.
“Early discussions are on with a few limited partner companies, domestic and global investors as well as wealth managers,” Nirmal Gangwal, founder and managing partner said in a statement on Monday.
With the proposed fund, the company is looking at deals worth Rs 2,500-3,000 crore, involving four to six transactions this year.
It is already in discussions to close a deal investing USD 150 million that could be through the AIF or to be concluded through the Singapore-based Broad Peak Advisors with which it had entered into a strategic partnership last November, said Vishal Prakash, partner and head (structured credit and recapitalisation funding) at Brescon.
The proposed fund will be a Category-II AIF that will explore deals of around USD 67 million each. It can be a mix of providing financing to either special situations in distressed/growth companies, structured credit, recapitalisation funds or a mix of all, said Prakash.
He added that they will also look at associating with some domestic partners to invest on a club basis on a day-to-day basis, like a co-investor.
Gangwal also said his family office may invest around Rs 100 crore in the proposed AIF. PTI BEN HRS hrs
