2 global PE investors show interest to invest $250 mn in Srei Equipment Finance

Kolkata: The US-based Arena Investors LP and Singapore's Makara Capital Partners have shown interest to invest up to $250 million in Srei Equipment Finance, the Srei Group announced on Thursday. Srei Equipment is a wholly-owned subsidiary of Srei Infrastructure Finance.

Srei's strategic coordination committee, headed by independent director Malay Mukherjee, will coordinate and negotiate with the PE investors to bring the capital. Ernst & Young will be advising the committee on the proposed fund raising.

Arena Investors LP is a multi-strategy investment firm with $2.2 billion of committed capital. It provides creative solutions for those seeking capital in special situations, Srei said. The firm's investment mandate is global, and also unconstrained in terms of asset class and industry.

Makara Capital Partners is a global financial services company under the regulatory purview of the Monetary Authority of Singapore. Founded in 2005, Makara Capital specializes in fund management, private equity as well as structuring and financing with a core focus on innovation, infrastructure and energy.

Srei is looking to raise capital, in parallel to its debt realignment plan. The lender is struggling to meet repayment obligations due to cash-flow problems since collection and realisation from its borrowers took a hit during the pandemic. The group proposed its lenders including State Bank of India, Indian Bank, Union Bank of India and Uco Bank to restructure the loans and align repayment schedule with cash flow generation.

Last year, Srei Infrastructure Finance transferred its businesses, assets and liabilities to Srei Equipment Finance in a slump sale.