Piramal Fund Management

Funds managed

Fund nameAsset ClassLicense
IIFL Income Opportunities Series – Special SituationsDebtSEBI AIF Cat 2
Piramal Asset Resurgence FundDistressed assetsSEBI AIF Cat 2
Piramal Ivanhoe Residential Equity Fund IReal EstateSEBI AIF Cat 2

About

Piramal Fund Management Pvt Ltd (PFMPL) is the fiduciary arm of the financial services business of Piramal Enterprises Ltd. PFMPL, (earlier known as Indiareit) was one of the first institutions in India to enter the Real Estate Fund Management business.

PFMPL is organised around an integrated approach to real estate funding. This approach enables us to provide financing solutions across the capital stack i.e. private equity, structured / mezzanine equity and structured debt.

Currently, the total funds managed/advised are approximately INR 4,300 crores across 5 Domestic Funds, 2 Portfolio Management Strategies and a Third Party Mandate.

PFMPL believes that real estate is an essential component of any investment portfolio as it provides both diversification and long-term capital appreciation. The team has extensive experience underwriting primary fund investments, developing and managing properties, and investing in direct real estate through unique equity, structured and debt transactions.

PEL had previously announced a strategic co-investment platform with Ivanhoé Cambridge, to provide long term equity capital to blue chip residential developers across the five major metro cities in India (Mumbai, Bengaluru, NCR, Pune and Chennai). Ivanhoé Cambridge has allocated an initial US$ 250 Mn towards this fund.

Ivanhoé Cambridge develops and invests in high-quality real estate properties, projects and companies that are shaping the urban fabric in dynamic cities around the world. It does so responsibly, with a long-term view to generate optimal, risk-adjusted returns. Ivanhoé Cambridge is committed to creating living spaces that foster the well-being of people and communities, while reducing its environmental footprint. 

Vertically integrated in Canada, Ivanhoé Cambridge invests internationally alongside strategic partners and major real estate funds that are leaders in their markets. Through subsidiaries and partnerships, the Company holds interests in more than 1,000 buildings, primarily in the residential, office, retail, industrial and logistics sectors.

Key staff

  • KHUSHRU JIJINA (Director)- Mr. Khushru Jijina is a Chartered Accountant with an illustrious career spanning over 2 decades in the field of real estate, corporate finance and treasury management and has been with the Piramal Group for around 12 years. He was a key member of the founding team of Piramal Fund Management Pvt. Ltd. in 2006. Mr.Jijina was re-inducted in the senior management of Piramal Fund Management Pvt. Ltd. in September 2012 and is now designated as the Director. Prior to this, Mr. Jijina was the Executive Director in Piramal Sunteck Realty, where he was responsible for a portfolio of projects spanning Mumbai, Navi Mumbai, Nagpur, Jaipur and Oman and oversaw all aspects of their execution. Mr. Jijina joined the Piramal Group in 2001 as the Vice President-Treasury and had been instrumental in securing debt at the lowest cost for the group, setting new benchmarks in the debt market. He started his career with Rallis, a TATA Group company, where he held several important positions in corporate finance over a span of 12 years.

Investment Philosophy (for firm)

http://www.indiarf.com/

IndiaRF’s mandate is to look at all sectors other than real estate as an asset class. The platform’s preference will be to invest in businesses that require balance sheet restructuring with a focus on debt restructuring, and engaging with organizations that have fundamentally strong growth prospects linked to India’s infrastructure and consumption needs.

Funds

https://www.bloombergquint.com/economy-finance/piramal-backed-india-resurgence-fund-gets-dollar225-million-from-canadas-cppib

India Resurgence Fund, a platform for buying out distressed assets, which was set up with Piramal Enterprises Ltd. and Bain Capital Credit as joint sponsors, seeks to make investments in assets which are in distress through the purchase of existing debt and equity securities through bankruptcy courts or directly from lenders, or through newly issued securities. Sectors focused are Industrials, export businesses and consumer businesses.

IIFL Income Opportunities Series – Special  Situations  – Piramal Management Fund Pvt. Ltd. provides investment advisory services to IIFL Income Opportunities Series – Special  Situations that was launched in january 2014 by IIFL Private Equity. The fund aims at investing into special lucrative situations with high yielding debt transactions. The fund is a closed ended debt scheme of IIFL Private Equity Fund and is full raised, closed and deployed. It is currently in the process of exiting its investments.

Media

Title: Piramal Targets Distressed Indian Assets, Source: CNBC, Date: 20 May 2016

Piramal – TPG tie up, launched $500mln –  $1bln fund, they together put in some money, rest was planned to be raised. They did not specify the ratio.

 Ivanhoe investment

Piramal Ivanhoe Residential Equity Fund is focused on providing growth capital to Tier 1 Developers across major metro cities in India. They are committed to supporting the demand for equity from blue chip real estate developers, as they increasingly leverage investor partnerships in the early stages of the development to enable deployment over longer time horizon while generating returns across its life cycle. Demonstrating a strong track record of execution and sales with the first phase of Palava City, the Lodha Group has successfully established the project and its associated micro market. With the investment, they look forward to enabling its second development phase as Palava City effectively translates its vision into reality.

Palava City is an integrated smart city near Mumbai, with over 4,500 acres of land being developed across different phases. Phase I is spread across ~300 acres of land and is already delivered. Phase II spreads across ~700 acres and is currently under development with a potential saleable area of ~57 million sq ft. Palava is located in the economic triangle of Navi Mumbai, Thane and Dombivli and is in close proximity to the rapidly expanding business hubs of Vashi, Airoli and Thane. Palava is currently home to a population of close to 100,000 people.

https://www.livemint.com/companies/news/piramal-ivanhoe-cambridge-to-invest-rs-500-crore-in-lodha-s-mumbai-township-1549349943956.html

https://realty.economictimes.indiatimes.com/news/industry/piramal-ivanhoe-cambridge-residential-equity-fund-invests-rs-500-crore-in-lodhas-palava/67847665

https://www.vccircle.com/piramal-cdpq-s-realty-platform-backs-lodha-smart-city-project-in-maiden-deal

Analyst questions

  • How do you add value, while investing in distressed assets?
  • Why invest in distressed assets? Of Course you would invest only in the companies you think some value is left to get unfolded, but how do you analyse it?
  • It’s quite risky investing in distressed assets, how do you measure risk?
  • With reference to India Resurgence fund, being in a collaboration with Bain Capital, what has been your experience ?
  • And also what is your experience while providing advisory services to IIFL for special opportunities funds ?
  • What exit strategies do you prefer for real estate business?
  • Which have been your portfolio companies so far for distressed funds?

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