Brookfield Asset Management is looking to create two investment structures – an equity fund as announced with State Bank of India last week and a debt investment trust – to invest Rs 7,000 crore in India’s stressed assets, people with direct knowledge of the matter said.
While the SBI collaboration will focus on equity investments in stressed assets, the other vertical will provide debt to the same companies, they said. The debt fund is set to be formed as an investment trust registered outside India, in either Singapore or Luxembourg. “Of the total money (Rs 7,000 crore), about 25 per cent (Rs 1,750 crore) would be under the equity vertical while the remaining 75 per cent (Rs 5,250 crore) would be deployed under the debt fund where Brookfield would have 100 per cent stake,” a person close to the matter said. According to another person, Brookfield has written to its investors last week about the arrangement to create a separate trust to manage the debt fund.