The platform will offer private credit solutions to companies across various industries in India, including manufacturing, consumer, industrial, healthcare, pharmaceuticals, logistics, among others, the company said in a release.
This partnership is aligned with both CDPQ’s investment strategy in India with long-term economic growth potential and Piramal’s direct lending strategy to mid-market companies and major corporations.
“This platform aims to leverage the significant market opportunity for alternative pools of capital to provide valuable solutions in the private credit space,” said Ajay Piramal, chairman, Piramal Group.
Since 2017, CDPQ has partnered with Piramal Enterprises, having recently invested $250 million in its compulsory convertible debentures. CDPQ’s real estate subsidiary, Ivanhoé Cambridge, has also committed $250 million towards a co-investment platform with PEL to provide long-term equity to bluechip residential developers.
“This is another opportunity for CDPQ to work with the best partners in a market where we see many possibilities over the long term,” said Anita M George, executive vice-president and head of strategic partnerships, growth markets, at CDPQ. “Through our partnership, we are able to support growing businesses and invest in India’s thriving entrepreneurship.”
According to Khushru Jijina, managing director, Piramal Capital & Housing Finance, the partnership will focus on performing credit and look to invest in companies with a scalable business model that have demonstrated strong execution capabilities and robust cashflows.