Apollo Global, ICICI Ventures end India JV

THE NEW YORK-BASED PRIVATE EQUITY FIRM PLANS TO SET UP

ITS CREDIT INVESTMENT BUSINESS IN INDIA

MUMBAI: Apollo Global Management and ICICI Bank’s private equity arm ICICI Ventures are ending their joint venture investment platform Aion Capital, as the New York-based private equity firm plans to set up its own credit investment business in India, said two people aware of the development.

The two had started Aion Capital in 2011 and raised $825 million for their first fund.

“Apollo and ICICI are calling off the Aion JV. Last year, they were looking to raise a second fund under the JV. Those plans are cancelled now,” one of the two people said on the condition of anonymity.

Utsav Baijal, a senior executive at the fund, will manage the existing fund’s portfolio and look at exiting the investments made by the fund, the person added.

Spokespersons for ICICI Ventures and Apollo Global could not be immediately reached for comment.

The Aion platform has made several investments in India including an acquisition of GE Capital’s commercial lending and leasing business in India, the takeover of bankrupt steelmaker Monnet Ispat & Energy along with the JSW group, and the acquisition of Interglobe Technologies, a business process outsourcing firm.

Apollo will join its American peers KKR and Blackstone that have their own independent teams in India.

In 2018, Apollo acquired JPMorgan Asset Management’s $300-million real estate investments in India in a move to expand its footprint. As of March 31, Apollo Global’s assets under management stood at $315.5 billion. According to the second person cited above, Apollo plans to set up its own credit platform in India.

“They are keen on credit deals in India including credit secondaries. They want to buy both distressed and performing loans,” he said.