Axis AMC launches Rs 3,500-cr distressed fund in tie-up with Akhil Gupta's Inversion

Leading fund house Axis AMC on Tuesday announced a Rs 3,500-crore buyout fund to invest in underperforming companies in partnership with Inversion.

The fund house claimed that the partnership is the first of its kind between an equity fund manager and the operational & turnaround specialist Inversion Advisory Services, promoted by telecom veteran Akhil Gupta of the Bharti group.

The Rs 3,500-crore fund, including a Rs 500-crore greenshoe option, will be launched after getting the necessary Sebi approval, the fund house said.

It added that the proposed fund will invest or acquire controlling stakes in pre-stressed, stressed, distressed and other underperforming assets.

The fund will be a unique offering as it will look to take controlling equity stakes in underperforming companies before working with them to turn them around, thus helping them improve their operational capabilities.

Axis AMC will be the investment manager of the fund.

Chandresh Nigam, managing director and chief executive officer of Axis AMC, said that with this entry into the exciting space of turnaround investing, "we believe we have created a unique proposition for investors looking to participate and benefit from the India growth story".

Akhil Gupta, chairman of Inversion, said this combination is ideal to not just exploit large untapped potential in this space but also serves an important social purpose in saving a large number of jobs and capital already invested by shareholders, lenders and vendors in such companies.

Amitabh Chaudhry, managing director and CEO of Axis Bank, said the partnership will take them forward on their path of creating a market-leading alternatives platform within the fund house.

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