Lone Star-IL&FS to invest in stressed infra assets

Private equity firm Lone Star Funds and infrastructure financing company IL&FS have announced a collaboration to jointly invest in stressed infrastructure projects in India, with a capital pool of $550 million.

The collaboration could result in asset purchases of up to $2.5 billion, a joint statement said.

The objective of the move aligned with the objectives of the Government of India and Reserve Bank of India in resolving stressed infrastructure assets, it said. The collaboration seeks to assist banks, sponsors and asset reconstruction companies to recycle capital, thus permitting reinvestment of capital in fresh projects. Lone Star invests globally in operating companies, real estate, equity, credit, and other financial assets.