Private equity funds: Four private equity funds in talks to raise over $1 billion for Indian purchases
The four PEs are in various stages of finalizing five-year offshore syndicated loans, the sources said.
The development paves the way for a record rake for buyout funding in India in 2022, building on an unprecedented flow of alternative investment into Indian companies last year, when total private equity inflows reached a new high of $63 billion.
ANZ, Barclays, Citigroup, Credit Suisse, Deutsche Bank, HSBC, ING, Investec and Standard Chartered Bank are among the banks involved in syndication facilities to help funds raise capital, sources said.
Individual banks could not immediately be reached for comment. Blackstone and Baring declined to comment. CVC and Partners did not immediately respond to emails until press time on Wednesday.
The Swiss fund Partners Group – which has agreed to acquire 75% of the capital of Atria Convergence Technologies from True North and TA Associates for 900 million dollars – is in talks with half a dozen banks to raise around 400 million dollars in order to fund the takeover, the sources said.
The five-year loan could be pegged at 436-446 basis points above the secured overnight funding rate (SOFR), a new global benchmark, they said.
CVC – which recently signed a definitive agreement to acquire Sajjan Chemicals for approximately $1 billion – is raising approximately $330 million in a five-year syndicated facility.