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Brookfield eyes stake in Clearwater Capital-backed Altico

The opportunity also led to a proliferation of debt-focussed alternative investment funds that structure deals like NBFCs and compete with these lending platforms.
BY BEx Bureau
BusinessEx
Jul 11, 2018

Canadas Brookfield Asset Management Inc. is looking to acquire a stake in Altico Capital India Ltd, a non-banking financial company that counts Clearwater Capital, Abu Dhabi Investment Council and Varde Partners as its main investors.

The real estate-focussed NBFC has held discussions with various potential investors to provide an exit route to its existing backers, two people familiar with the development told VCCircle, asking not to be named.

One person said Altico has held discussions with Brookfield for capital infusion. This may lead to all the investors exiting the company or partially selling their stakes, he said.

The second person said that while Altico has raised debt funding in the past, it is now actively considering options to let its private equity backers exit.

Two people said that opting for a strategic buyer for a full exit or partial exit is the only option since an initial public offering does not look possible in the near future.

Earlier in the day, the Mint newspaper also reported that Brookfield was eyeing a stake in Altico and that Varde Partners might sell its entire stake.

The people mentioned above said that if the deal goes through, it would provide a readymade platform to Brookfield for a debt play in India.

Demand for debt capital from NBFCs in Indias real estate sector has grown rapidly over the past few years due to poor sales in the residential segment and banks reluctance to lend. Developers are increasingly taking on debt to finish projects and let existing lenders exit.

The opportunity also led to a proliferation of debt-focussed alternative investment funds that structure deals like NBFCs and compete with these lending platforms.

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