NY-Based Avenue Capital Becomes Sponsor Shareholder in Arcil

Avenue India Resurgence Pte Ltd. (Avenue), an arm of the New York-headquartered Avenue Capital Group, a global investment firm founded in 1995 with a focus of investing in credit and other special situations investments in the United States, Europe and Asia, has now joined Asset Reconstruction Company (India) Limited (Arcil) as the latter’s new Sponsor Shareholder, following the completion of the secondary purchase from few existing shareholders. Avenue at present has four offices across Europe and an additional five offices in Asia, including one in New Delhi. The Firm currently manages over $10 billion in assets and has invested approximately $80 billion across a variety of industries, regions and cycles.

In the new scheme of things, a representative of Avenue is expected to join the Board of Arcil, post regulatory approvals. Avenue is expected to pick up more shares and the whole deal is likely to be closed shortly with a couple of other shareholders. Post those tranches, Avenue is expected to achieve minority interest in Arcil.

While Avenue draws on the skills and worldwide experience and maintains a well-developed infrastructure with dedicated Accounting, Operations, Legal, Risk Management, Business Development and Information Technology Departments, Founded in 2002, Arcil is India’s pioneer ARC, currently managing an AUM of Rs. 12,000 crore in non-performing loans. Arcil’s shareholders include SBI, IDBI, PNB, ICICI and several other leading domestic and international investors including GIC. It has its presence in 12 Indian cities and a team strength of 300.