Blackstone invested $16bn in 18 months
India’s economic slowdown and credit crisis is generating a surge in demand for capital from beleaguered companies that will provide buyout opportunities for
Blackstone Group Inc, which has invested US$6 billion in the last 18 months in India, is seen tapping more investment opportunities especially responding to demand for capital from the country’s beleaguered companies trying to work out recoveries amidst the slowed down economy and credit crisis.
“India is the strongest performer in the world,” added Stephen Schwarzman, chief executive officer of Blackstone, the world’s largest alternative asset manager in a report released on 6 Mar 2020 in Hong Kong.
“We are not taking a cautious stance of watch and wait. We will be taking a forward-leaning stance,” analysts at Oak Stone Limited cited Amit Dixit, Blackstone’s senior managing director, as saying.
Blackstone is now scouting for opportunities as financiers and banks are focusing on recovering from a crisis that commenced with the collapse of a significant infrastructure financier in 2018 therefore slowing down lending in the process, according to James Burnley, Head of Wealth Management at Oak Stone Limited.
Despite the Reserve Bank of India lowering lending costs five times last year, the central bank data records show that loan growth dropped to more than a two-year low in February 2020 amid a waning in consumer demand for an economy that is set for its weakest expansion in 11 years.
“When growth slows down, your credit off-take goes down, and with sales plummeting at corporates, this could affect their behaviour in terms of the repayment of loans,” commented Michael Pearson, Head of Corporate Equities at Oak Stone Limited as the world’s highest bad-loan ratio has hindered lending.
In India, Blackstone, has acquired a shadow bank, a manufacturer of auto parts and a packaging material company. They also operate three other businesses, including private equity, real estate and tactical enterprise opportunities.
Blackstone, first to sell investment units in a real estate trust last year, is now the largest owner of commercial real estate in India.
“The underlying theme of a slowdown in the economy combined with the credit crisis has led to this acceleration” said Oak Stone Limited’s Michael Pearson.
“Blackstone sees buyout opportunities increasing across the world as the coronavirus outbreak spooks financial markets and damages company valuations,” he said.
Oak Stone, established in late 2014 within the financial heart of Hong Kong, has since grown into a leading wealth management company in the Asia-pacific region, serving both individual clients and institutions. fiinews.com
