Four PE funds in talks to raise over $1 billion for Acquisitions in India

Partners Group, CVC Capital, Blackstone, and Barings are in discussions to obtain more than $1 billion in syndicated loans, principally to support their planned acquisitions in India.

According to the sources, all four PEs are nearing completion on five-year offshore syndicated loans. The move paves the way for a record buyout finance mop-up in India in 2022, following an unparalleled infusion of alternative capital into Indian firms last year, when overall PE inflows reached a new high of $63 billion.

The sources said, “ANZ, Citigroup, Barclays, Deutsche Bank, Credit Suisse, ING, HSBC, Investec and Standard Chartered Bank are some of the banks involved in the syndication facilities to help the funds to raise capital.”

The sources added, “ Swiss fund Partners Group - which has agreed to acquire 75% stake in Atria Convergence Technologies from True North and TA Associates for $900 million - is in talks with about half a dozen banks to raise around $400 million to fund the buyout”.

According to them, the five-year loan might be priced at 436-446 basis points more than the Secured Overnight Funding Rate (SOFR), a new worldwide standard. CVC is funding $330 million in a five-year syndicated facility after signing a formal agreement to buy Sajjan Chemicals for around $1 billion.