State Bank of India (SBI) and Brookfield Asset Management Inc. have signed a memorandum of understanding (MoU) to launch a distressed asset management fund, the bank said in a statement on Wednesday.
As part of the agreement, the two have proposed to launch a joint venture (JV) where Brookfield will commit approximately Rs.7,000 crore and SBI will put in up to 5% of the total investments into stressed assets. The fund will independently evaluate and invest in various stressed assets, and will rely upon the Canadian asset manager’s operational expertise to manage recapitalized businesses.
