Brescon to raise USD 250-300 Mn for its alternative investment fund

Debt resolution and divestment advisory company Brescon & Allied Partners LLP is reportedly in talks with global and domestic investors to raise USD 250-300 million as a part of its Alternative Investment Fund (AIF).

The financial advisory firm also has a USD 150 million deal in the pipeline, which could be through the AIF, or via its recent collaboration with Singapore-based Broad Peak Advisors (Broad Peak).

Nirmal Gangwal, managing partner at Brescon was quoted saying that the company seeks to enter into agreements worth USD 334 - 401 million, with a target of 4-6 transactions during the current calendar year.

Vishal Prakash, head of Recapitalization Funding and Structured Credit at Brescon stated that the fund is mainly a category II AIF that will cover deals worth USD 67 million each and will provide funding to special situations in distressed or growth firms, recapitalization funding, structured credit, or a combination of all these.

He further announced the company’s plans to raise its own AIF which will have a minimum of USD 250-300 million capital. The firm is now developing appropriate objectives, strategies, and mandates for the fund and is in early discussions with limited partners, domestic firms, and other global wealth managers, he claimed.

Notably, Brescon is also considering the option of raising capital from Managing Partner Gangwal’s family office. The commitment is estimated to be 5-10% of equity or around USD 10-13 million.

As per sources, the AIF fund will also conform to the new rules announced by SEBI on Special Situation Funds. Gangwal believes that local capital markets could significantly mature and grow over the next five years.

In recent years, Brescon has facilitated two large transactions worth USD 500 million involving Panacea Biotec and Jayaswal Neco Industries. In 2016, the company had partnered with a diversified global conglomerate, Piramal Enterprises Ltd to float a USD 802 million fund.

Source Credit –

https://www.business-standard.com/article/companies/brescon-in-talks-with-investors-for-raising-250-300-mn-for-its-aif-122013100498_1.html