Axis AMC partners with Inversion Advisory Services to raise Rs 3,500-cr for buyout fund

Axis Asset Management Company (Axis AMC), promoted by Axis Bank, has partnered Inversion Advisory Services to raise up to Rs 3,500 crore for a buyout fund, which will invest in underperforming companies.

The fund will be raised under the Alternative Investment Fund registration. The companies aim to acquire a controlling stake, primarily in pre-stressed, stressed, distressed and other underperforming assets, a joint release said.

Inversion, promoted by telecom industry veteran and chartered accountant Akhil Gupta, employs functional experts and industry experts on its panel to provide management support to portfolio companies. Gupta is also the Vice Chairman of Bharti Enterprises and a board member of various Bharti Group companies.

The companies said they have filed an application with SEBI for the proposed fund, which will be sector agnostic. It will have a target of Rs 3,000 crore and a greenshoe option of Rs 500 crore.

The companies are seeking to take advantage of the strong fund management expertise of Axis AMC and operational and turnaround expertise of Inversion to offer a unique platform for investors, the release said.

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“It will be a unique first of its kind offering that will look to take controlling equity stakes in underperforming companies before working with them to turn them around. It will thus help such quality companies with strong performance and operational capabilities which may be facing temporary headwinds owing to special circumstances including unsustainable debt, temporary disruptions, etc. to get on a credible turnaround path,” it said.

Axis AMC, which will be Investment Manager for the fund, will employ a team to evaluate potential opportunities, while Inversion would provide management support to the acquired companies with its team of functional and industry experts.

“With our 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,” Axis AMC MD and CEO Chandresh Nigam said.

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

Axis Bank MD and CEO Amitabh Chaudhry said that Axis AMC and Inversion can together create an offering that can help investors participate profitably in this asset class. “The addition of this new capability will also take us forward on our path of creating a market leading alternatives platform within the AMC.”

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