India’s Piramal plans to raise $1.5bn for private credit

economictimes.indiatimes.com:

Piramal Alternatives plans to raise $1.5 billion for investment in India’s high-yield companies via private credit, according to its chief executive officer. The unit of Piramal Group, which is controlled by billionaire Ajay Piramal, has four existing private credit funds that together have raised $4 billion, said Kalpesh Kikani, managing director and chief executive officer at Piramal Alternatives.

Their returns have exceeded 20% on an annualized basis, he said. Those four funds include India Resurgence Fund in partnership with Bain Capital and the Performing Credit Fund where the Caisse de depot et placement du Quebec is an anchor investor.

“Deployments should be through our four existing funds that can offer private source of capital,” Kikani said. The company is sounding out international investors for funds, “be it for transformation, turnaround, growth capital or special situations.” India’s economy is forecast to grow 5.9% this year, out-pacing China and the average for other emerging economies in Asia, according to the International Monetary Fund.

That’s spurring inflows into the country. “The need for private capital has suddenly surged amid India’s fast expanding economy,” said Kikani.