1/20/2017 AvendusCapitaltoenterstructuredfinancewithRs500crorefundPrintViewLivemint

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Fri,Jan202017.0756AMIST

AvendusCapitaltoenterstructuredfinancewithRs500crore
fund
AvendusCapitalwilltargetinvestmentsingrowthcompanies,midmarketcompanies,solidbusinesses

NewDelhi:AvendusCapital,backedbyglobalprivateequityfirm
KohlbergKravisRoberts&Co.Lp,isallsettomarkitspresencein
thestructuredfinancespacewithadedicatedRs500crorefund,atop
executivetoldMint.
Thefundamajorpartofwhichisbeingraisedfromdomestic
investorswilltargetinvestmentsingrowthcompanies,midmarket
companies,solidbusinesseswherethereisanopportunitytoprovide
structureddebt/privatefinancing.Itwillnot,however,lookat
infrastructure,realestateorstressedassets.

Itisallsynergywithinthefirm...startingfromcorporatefinancing
advisory,andwealthmanagementbusinessandnowfinancing
businesswhichiscomingintoshape,saidSandeepThapliyal,chief
executiveofAvendusFinancePvt.Ltd,thenonbankingfinancial
company(NBFC)floatedbyMumbaibasedAvendusCapital.
SandeepThapliyal,CEOofAvendusFinancePvt.Ltd.
Thapliyalistheformerheadofcommercialandinvestmentbanking
atRBLBankLtd.

USbasedKKRboughtasignificantstakeinAvendusCapitalforabout$115millioninNovember2015.Aspartofthedeal,KKRcommitted
toinvestanother$60millionintheNBFC,whichhasbeenstartedwithacapitalbaseofRs400crore.ThefirmexpectstotakeittoRs3,000
croreoverthenext1824months.

Whilewewilllookatseniorsecureddebt,wewillalsolookatPEtakeoutsituations,mezzaninefinancingandacquisitionfinancingandso
onandsoforth,saidThapliyal.

Sotheunderlyingphilosophyislookingathighqualitybusinessandentrepreneursandthereareabunchoftheminthemarket,especially
inthemidmarketwhereweareworking.AndwhichiswhytherehasbeensomuchofequityinterestthatAvendushasbeenabletoevince
insomeofthosecompaniesandbusinesses.

Sinceitsinceptionin1999,Avendushasdoneprivateequitysyndicationworth$4.4billionacross117deals.Ithasadvisedinover100M&A
dealstotalling$6.1billion.

Theproposedstructureddebtfundwillbeledbysixmembers,includingThapliyal.

Whilethefirmhasalreadyhiredacoupleofseniorexecutives,itislookingtohireonemoreperson.Overthenext67months,thefirmwill
haveabout1718peopleonboard.

AvendusCapitalhasrecentlyprovidedfinancingtothetuneofRs50croretoMumbaibasednutraceuticalingredientscompanyOmniActive
HealthTechnologiesLtdforitsacquisitionofIndfragLtd.

Also,promotersofautocomponentsmakerSonaGroupon5JanuaryacquiredthesharesheldbyMahindra&MahindraLtdinjointventure
company,MahindraSonaLtd,forRs120croreusingaloanextendedbyAvendusFinance.

Clearlythefinancingbusinessperseisexpectedtosortofplayasignificantrole,giventheopportunitywhichisoutthere.Andalso,someof
theotherbusinessesthatarecomingonstream.Overtime,corporatefinancingwillcontinuetodowellbutsomeoftheotherbusinesses
havebecomesortofprominentasfarasthefirmisconcerned.And,attheendofit,itistheentire(Avendus)franchiseandtheyallfeedon
eachother,Thapliyalsaid.

http://www.livemint.com/Companies/0LPIZzH3ef7pIP4GcS39TP/AvendusCapitaltoenterstructuredfinancewithRs500crore.html?facet=print 1/2
1/20/2017 AvendusCapitaltoenterstructuredfinancewithRs500crorefundPrintViewLivemint
Headdedthatthereisahugeopportunityintheprivatecreditspace.

Overthenextfourtofiveyears,itis$1415billionopportunity,hesaid,citinginternalresearch.

SeveralforeignanddomesticfundmanagersarebettingbigonthegrowinginvestmentopportunityintheprivatecreditspaceinIndia.As
perrecentdatafromLondonbasedmarketresearchfirmPreqin,thenumberofIndiafocusedprivatedebtfundshasgrownexponentiallyin
therecentpast,and12suchfundsareontheroadtoraiseasmuchas$5billionin2016alone,thehighestinanyyear.

InSeptember,AvendusCapitalhiredtheentiretopmanagementofAmbitInvestmentAdvisory,includingCEOAndrewHolland,aspartofa
plantoenterthehedgefundbusinessandexpanditsportfolioofalternativeassetmanagementbusinesses.

AvendusCapitalwillbemanaging$2billionbytheendofthecurrentfinancialyearinitswealthmanagementbusiness,GeorgeMitra,CEO
ofAvendusWealthManagement,toldMintinNovemberlastyear.

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