IFC mulls $100m investment in Eight Capital-JC Flowers joint India distressed asset fund

Photographer: Dhiraj Singh/Bloomberg

The International Finance Corporation (IFC), a member of the World Bank Group, has proposed to make an investment of up to $100 million into the JC Flowers India Opportunities Fund, a joint distressed asset investment fund by US-based PE firm JC Flowers and Indian investment firm Eight Capital.

Along with the equity investment in the fund, which is targeting to raise a total corpus of $500 million, IFC is also looking to make an equity investment of up to $4 million in local currency in JC Flowers Asset Reconstruction Company (JCF ARC), which is also co-owned by J.C. Flowers and Eight Capital. 

The company, which was previously known as Ambit Flowers Asset Reconstruction Company, was renamed after Eight Capital and hedge fund Emso Asset Management bought out Ambil Capital’s 47.5% holding in the company, leaving existing shareholder J.C. Flowers as the largest shareholder in the firm.

Following the deal, Eight Capital, which invests in distressed and special situation opportunities in India, has teamed up with J.C. Flowers, which has invested more than $17 billion in 56 companies across 18 countries, to set up a joint Singapore-incorporated fund.

Through the fund, the two firms will mobilise capital from local and international investors, including IFC, to invest in mid-size corporate distressed assets in India.

Following IFC’s investment, both Eight Capital and J.C. Flowers will collectively invest $25 million in the JCF Platform (company and fund).

IFC says it expects the investment into the JFC platform to help offload mid-sized distressed assets by Indian financial institutions, which will in turn support their capital position by freeing up capital and increasing liquidity, and reducing large costs associated with the management of these assets

“In addition, IFC expects that the project will help revitalise companies in distress, by working out their existing non-performing loans and providing new financing and support them in preserving jobs,” it said in the disclosure.

Beyond capital support, IFC says it plans to provide assistance in mobilising capital from the private sector to invest in the resolution of mid-sized corporates in distress in India.

The proposed investment into the J.C. platform kicks off IFC’s investment into distressed asset projects in 2021.

Last year, among the similar projects it had proposed were a $30 million investment in a distressed asset recovery programme (DARP) platform being set up by NPL restructuring firm Collectius AG, and a debt facility of up to $45 million for Descap1 Private Equity Trust, a distressed hospitality asset investment vehicle of the Thailand-based Destination Group.

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.

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.