Acre ARC: Acre ARC buys over Rs 3,000 crore bad debt

Mumbai: Hong Kong-based $8 billion alternative investment fund Ares SSG, backed by Acre Asset Reconstruction Co (ARC), has purchased loan portfolios from a group of banks and non-banking financial firms in the as part of several transactions completed in the quarter ending June 2022, aggregating to over ₹3,000 crore and swelling ARC’s assets under management (AUM) to nearly ₹12,000 crore.

Portfolios include ₹1,100 crore from Indiabulls Home Finance, consisting of home loans and builder loans, and ₹1,200 crore of commercial vehicle loans from

said two people familiar with the transactions.

These deals include ₹580 crore of corporate loans from

and ₹200 crore in loans from private equity giant Kohlberg Kravis & Roberts Co (KKR) from engineering firm (WIL). These two transactions were reported by ET in June and April respectively.

Acre did not respond to an email seeking comment.

“These loans were purchased at 40 to 70 cents to the dollar and propelled Acre to third place among ARCs with an AUM of ₹12,000 crore,” said one of the people quoted above.

CRAs typically buy debt at a discount in an effort to recover more than they paid for the loans.

Acre will recover or restructure these loans either by paying fees to service providers or by working with borrowers to find a workable repayment schedule.

These loans also include small purchases from public sector banks.

Individual loan sellers could not immediately be contacted.

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