CPPIB investing in Indian distressed assets platform

The Canada Pension Plan Investment Board is committing US$225 million to the India Resurgence Fund platform, through its wholly owned subsidiary CPPIB Credit Investments Inc.

The IndiaRF is a distressed-assets buyout platform, jointly sponsored by Piramal Enterprises Ltd. and Bain Capital Credit. It seeks to buy distressed assets by purchasing existing debt and equity securities, either through bankruptcy courts, directly from lenders or through newly issued securities. After taking control of an asset, the platform performs a turnaround and implements operational improvements.

Read: CPPIB investing through India infrastructure fund

The CPPIB is joining the platform’s anchor investor, the International Finance Corp. Together, the two entities intend to improve environmental, social and corporate governance standards at IndiaRF, according to a press release.

“Our investment in IndiaRF represents an increase in our credit commitments in India, targeting attractive risk-adjusted returns in the sizeable Indian distressed-credit space,” said John Graham, senior managing director and global head of credit investments at the CPPIB. “Strong partnerships are at the core of how we invest — a strong local operator with active oversight from a trusted global partner will allow us to further increase our investments in India for the long term.”

Read: Pension Podcast: Institutional investors urged to consider bottom-up approach to India

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