Piramal sets up AMC with assets worth ~11,000 crore

Kalpesh Kikani, former MD of AION, onboarded as chief executive

Ajay Piramal-led Piramal Enterprises on Wednesday said it has set up an alternatives fund management business which will house all its partnerships with global funds like CDPQ, CPPIB, APG and others as well as its own subsidiaries.

The new company, Piramal Alternatives, will have assets worth ~11,000 crore under management.

Piramal has a joint venture with Canadian pension fund manager CPPIB to provide loan to property developers.

And, with CDPQ, it has a joint venture to give equity to developers.

Piramal has onboarded Kalpesh Kikani as chief executive officer (CEO) .

Piramal recently won the bid for Dewan Housing Finance Corporation, the stressed mortgage lender, and is planning to expand its retail lending business.

“While globally, alternatives assets have grown rapidly over the last 10 years to over $11 trillion, in India, the asset class has grown much faster at over a 20 per cent compound annual growth rate (CAGR), making it one of its highest growth opportunities. Our desire is to create a world class alternatives business, across multiple asset classes, that helps fill a significant deficit of long-term risk capital needed by Indian businesses. The alternatives business is another step in building a new-age and digitally-driven diversified financial services conglomerate at Piramal,” said Anand Piramal, executive director at Piramal Enterprises.

Kalpesh was founding managing director (MD) at AION Capital (a joint venture between Apollo Global Management and ICICI Group).

“I am excited to join the Piramal team,” said Kalpesh, adding, “Piramal Alternatives has a great business model, partnered bestin-class global investors, and is uniquely positioned to build a leading homegrown alternatives business across private debt, private equity, and infrastructure. As the Indian economy evolves, Piramal Alternatives can be a significant provider of customised financing solutions to high quality corporates that are looking to maximise their potential.”

“OUR DESIRE IS TO CREATE A WORLD-CLASS ALTERNATIVES BUSINESS ACROSS MULTIPLE ASSET CLASSES THAT HELPS FILL A SIGNIFICANT DEFICIT OF LONG-TERM RISK CAPITAL NEEDED BY BUSINESSES” ANAND PIRAMAL

Executive Director, Piramal Enterprises