Goldstein, Roth & Co, an investment company on Wednesday announced that it was aiming at deploying Rs 10,000 crores ($1.4 billion) in Indian markets. A release from the firm announced it was aiming to infuse that money into equity and debt markets.
According to the release, a number of investment opportunities have been mentioned. "The firm is sector agnostic but its current attention is on the infrastructure and real estate markets because the loans to these sectors are comparatively larger in value than others. The company also has a keen interest in the massive bad loan books of the public sector undertaking banks, owing to potential opportunities in bridging the cultural gap between PSU banks and foreign investors, by facilitating quick transactions. Goldstein, Roth & Co is also in the process of raising a domestic distressed asset co-investment fund of Rs 720 crores and is in talks with various private banks to tap their HNI networks for this initiative," adds the release.
Buying NPA loans from banks features at least two times on the release, with the firm saying that it "has relationships with various international investors and is focused on bridge financing for promoters wanting to sell assets and needing the proceeds advanced to them; buying NPA loans from banks, funding one-time settlements with banks for promoters and refinancing loan against shares."
"Being a quick and nimble liquidity provider in an illiquid environment puts us in an enviable position", adds Sharik Currimbhoy, the Managing Director at the firm on the Indian distressed assets market.
"We are in a place in the credit cycle where the credit window has been closed for an extended period. This provides a unique opportunity to us as a liquidity provider, to access good projects with good governance and inappropriate capital structures to capitalize on. With banks wanting to rid themselves of bad loans and clean house, we have a window of opportunity to make the most of the haircuts that the banks take and bring projects that weren't previously feasible back to health," he adds
Speak of haircuts, Currimbhoy is the grand-son of celebrity cosmetic stylist Shahnaz Husain. Also, his love for the number 12 is evident from a generous donation he doled out to his alma-mater- Columbia University. The transaction of $12.12 million was recorded on 12:12:12 PM of 12th December 2012. Another attempt from Currimbhoy's hat is a $160 million bid for Shangri La Hotel (St Regis in Lower Parel).
The Goldstein Roth & Co is a recent merger. It merged with Element Capital, a firm that had advised in marquee transactions such as Xander Inc's acquisition of PayPal and a second transaction involving purchase of eBay campus from Appaswamy Real Estate- considered among India's largest pre-leased commercial transaction.
Inputs from: PRNewswire