Blackstone’s Aadhar Housing to exit small-builder financing business

Photo: Bloomberg

Blackstone Group Inc.’s Indian mortgage lender plans to exit its small builder financing business at a time when pain from the nation’s credit crunch abounds, with another victim claimed this week.

“We are in the process of phasing out this small builder loan portfolio to keep the company 100% retail focused as per mandate from new owners,” said Deo Shankar Tripathi, 66, chief executive officer of Aadhar Housing Finance Ltd., in an interview.

The Reserve Bank of India this week seized major non-bank lender Dewan Housing Finance Corp., which held a controlling share in Aadhar until selling it to Blackstone in June. India’s more than 15-month-old credit crisis has dragged economic growth down to its slowest in six years.

Tripathi said he expects some improvement in Indian credit markets next quarter.

While more than 99% of Aadhar’s lending is already to individuals, about 45% of non-performing loans at the end of March were tied to its small non-consumer book, according to an India Ratings’ review last month. Blackstone’s capital injection lowered Aadhar leverage from 9.5 times of net-owned funds to 3.75 times, according to Tripathi.

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.