Axis AMC and Inversion Advisory Services, promoted by telecom veteran Akhil Gupta, have announced that they have entered into a partnership to invest in underperforming companies. They plan to raise upto INR 3,500 crore for the proposed new fund under its Alternative Investment Fund registration. They aim to acquire controlling stake primarily in pre-stressed, stressed, distressed and other underperforming assets.
They also seek to take advantage of the strong fund management expertise of Axis AMC and operational and turnaround expertise of Inversion to offer a unique platform for investors.
It will be a unique first of its kind offering that will look to take controlling equity stakes in underperforming companies before working with them to turn them around. It will thus help such quality companies with strong performance and operational capabilities which may be facing temporary headwinds owing to special circumstances including unsustainable debt, temporary disruptions, etc. to get on a credible turnaround path.
Axis AMC (which will be the Investment Manager of the fund), with its end-to-end investment and fund management credentials, and Inversion with Akhil Gupta’s demonstrated operational and turnaround experience, are uniquely suited to launch a special opportunities fund.
The Investment Manager will employ a team to evaluate potential opportunities. Inversion would provide management support to acquired companies with its team of functional and industry experts.