Singapore-based Broad Peak Investment Advisors Pvt Ltd (Broad Peak) has entered into a strategic partnership with Brescon & Allied Partners LLP (Brescon) to invest up to $300 million (around Rs 2,235 crore) in special situations in India.
“The strategy is to invest across multiple special situations in India ranging from turnaround, debt resolution to litigation financing, among others,” Brescon, the debt restructuring and turnaround advisory firm, said in a statement.
The strategic arrangement between the two firms aims at improving the scale of business between them, and also enhance the agility with which these situations are identified, resolved, structured and funded, the statement said.
After two failed efforts to start a fund, Mumbai-based Brescon planned to facilitate distressed deals worth up to $400 million in the current fiscal year, Nirmal Gangwal, Founder & Managing Partner of Brescon, had told VCCircle in an interview.
“Brescon has a strong reputation in the arena of stressed/distressed debt in India, and we look forward to working with them and other stakeholders in those domains,” said Sandeep Gupta, Managing Director at Broad Peak.
Singapore-based Broad Peak is a pan-Asia focused multi-strategy investment management firm.
“Broad Peak is known for their expertise in investing in special situations, and we are excited to partner with them to be able to bring the appropriate capital to companies that are in need of such capital. This arrangement is a perfect combination of global capital backing local knowledge to achieve a win-win situation,” Gangwal said.
“The current arrangement with Broad Peak is a precursor to Brescon’s ambition of raising a dedicated special situation fund from LPs (limited partners) spanning both domestic and foreign investors,” he added.
Brescon is an independent special situation advisor that offers advisory services for mergers and acquisitions (M&A), divestments, spinoffs, bankruptcy, business turnaround and restructuring, and also structured financing solutions and insolvency services under the purview of the Indian Bankruptcy Code (IBC).
In May this year, Brescon appointed Vishal Prakash as partner and head for its structured credit and recap funding business, with which it aims to enhance its product portfolio across special situations, structured credit and recapitalisation finance, the statement said.
Its plan to set up a Rs 6,000-crore fund in a tie-up with billionaire Ajay Piramal-led Piramal Enterprises Ltd five years ago, fell through.
In 2019, it renewed efforts to take a second shot at starting a fund, but this too failed to take off.
In the past year, the debt restructuring and turnaround advisory firm facilitated two large transactions worth $500 million involving Jayaswal Neco Industries and Panacea Biotec.
