Lone Star Funds and RattanIndia Group will jointly invest $400 million in RattanIndia Finance. They will each own 50 percent of RattanIndia Finance, of Delhi and Mumbai. RattanIndia Finance is a non-banking financial company.
MUMBAI, India & NEW YORK–(BUSINESS WIRE)–Affiliates of the Lone Star Funds and the RattanIndia Group will jointly invest Rs. 2,600 crore / USD $400 million in a Non-Banking Financial Company (NBFC), RattanIndia Finance. Rajiv Rattan and affiliates of Lone Star will each own 50% of RattanIndia Finance.
RattanIndia Finance will be a top 10 NBFC in India, based on the currently estimated capitalization. Mr. Rattan, currently chairman of the RattanIndia Group, will be the Chairman and Chief Executive Officer of RattanIndia Finance, with full responsibility in managing the day-to-day operations of the business.
Mr. Rattan, the co-founder of the Indiabulls Group, graduated from the Indian Institute of Technology, Delhi, in 1994. Mr. Rattan was instrumental in the establishment and the overall build-out of Indiabulls Housing Finance, a company that today is one of the largest NBFCs in India by assets. Mr. Rattan has also been very closely involved in establishing various other Indiabulls Group businesses, including, but not limited to, Indiabulls Real Estate and Indiabulls Power. Mr Rattan’s natural entrepreneurial spirit, combined with the extensive experience of building several successful businesses in India over the past two decades, puts him in the unique position of building RattanIndia Finance into a successful business.
Lone Star is a leading private equity firm that invests globally in operating companies, real estate, equity, credit, and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized seventeen private equity funds with aggregate capital commitments totalling over $70 billion. Lone Star has substantial experience in both the public and private investment sectors, having closed more than 1,400 transactions with an aggregate purchase price of USD $195 billion. Lone Star has been a leading investor in banks and non-bank financials around the world, most recently in Portugal, when, in 2017, Lone Star invested €1 billion to acquire a 75% stake in Novo Banco, one of the country’s largest banks .
On the announcement of the collaboration, Mr. Mark Newman, President, Lone Star Asia Acquisitions, Limited, said, “Lone Star looks forward to collaborating with RattanIndia on building a leading NBFC in India. Led by Rajiv Rattan, the RattanIndia team is highly experienced, with an outstanding track record for building successful businesses in India, including having already built a successful NBFC from its inception. Lone Star, with its successful track record of investing across the globe in financial services, is excited about the partnership with Rajiv and investing at a time when companies across India face challenges in obtaining financing via traditional bank channels. We are excited about India’s future growth prospects and are committed to the success of RattanIndia Finance.”
Mr. Rattan, Chairman, RattanIndia, said, “We are greatly looking forward to filling a vast gap in credit availability and penetration in India, and we welcome Lone Star’s confidence in us given its success in identifying value and opportunity in markets around the world. The capital strength of RattanIndia Finance will immediately make it a key lending platform for companies and small-to-medium sized businesses that seek access to capital. RattanIndia Finance will also focus on steadily building a retail platform that extends across India. Our team is committed to building an institution that strengthens our communities, and enables people and businesses to realize their growth potential.”
All relevant regulatory approvals have been received and RattanIndia Finance is already engaged in deploying the capital, with offices established in Delhi and Mumbai.