Brookfield to invest $203m in Everstone-backed Indian shadow lender

Photo: Bloomberg

Canadian asset manager Brookfield Asset Management has entered into an agreement to invest about $203 million (Rs 1,450 crore) in private equity firm Everstone Group-backed IndoStar Capital Finance Limited.

After the investment, Brookfield will own a 40 per cent stake in the non-banking finance company (NBFC), Everstone said in a statement on Friday. The asset manager will become a co-promoter in IndoStar and nominate two board members.

The overall investment will comprise a combination of primary investment in equity shares and compulsorily convertible preference shares of Rs 1,225 crore and a secondary purchase of shares from IndoStar Capital Mauritius.

The fresh investment by Brookfield will support the continued growth of IndoStar’s retail business. R. Sridhar will continue to lead the company in his role as the company’s vice-chairman and CEO.

“We believe in the long-term secular growth runway of the Indian retail financial services sector. IndoStar has an experienced management team and a strong position in attractive and growing retail lending segments. We look forward to partnering with Everstone and the IndoStar management team to further scale the business,” Brookfield senior vice president Aditya Joshi said.

IndoStar Capital Mauritius continues to be the promoter and an active shareholder in the Indian NBFC, which has assets under management of Rs 10,600 crore and claims to cater to nearly 60,000 customers.

Nomura served as the exclusive financial advisor for the deal. S&R Associates, AZB & Partners, and Cyril Amarchand Mangaldas acted as legal counsel for Everstone, Brookfield and IndoStar, respectively.

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

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Singapore Reporter/s

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).

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

  • 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.