Global alternative asset management company Brookfield Group is planning to come back to the asset reconstruction space in India teaming up with the State Bank of India and HDFC. It is proposing to set up a mega ARC to take advantage of the increasing NPAs in the country. According to the news report, the 3 entities are expected to invest up to $1 billion in terms of initial equity. Brookfield will hold a majority stake in the venture. Brookfield’s proposal is to set up a new team for the ARC business, which will be different from its existing teams in India like in credit business and special situations verticals. Brookfield had in 2019 acquired US-based distressed asset manager Oaktree Capital as part of its strategy to expand its global footprint into distressed assets. Earlier, State Bank of India and Brookfield had announced a special situation investment vehicle, in which the 2 entities had planned to commit Rs 7000 crore. SBI had agreed to contribute up to 5% of the total investments made by the fund. The venture, however, failed to take off.
