Anil Agarwal, Centricus to invest $10 billion targeting government privatizations
Commodities tycoon Anil Agarwal is reportedly planning to invest $10 billion (Rs. 73,500 crore) through a new partnership with London-based Centricus Asset Management Ltd. targeting government privatizations. According to Bloomberg, the partnership will seek investments in Indian companies offering substantial growth opportunities. They plan to turn around companies being sold off as part of the government's Rs. 2.1 trillion divestment program.
Strategy will play crucial role in India's ongoing industrialization: Agarwal
Reportedly, Agarwal said on Thursday that India's entrepreneurial dynamism "can be harnessed to unlock incredible transformation in the public sector." The 66-year-old tycoon—who flourished buying state companies and turning them around—added, "We believe that this strategy can, and will, play a crucial role in the country's ongoing industrialization." Agarwal's Vedanta group has been looking to acquire the government's stake in Bharat Petroleum Corp. Ltd.
Agarwal, Centricus plan fund using private equity-type strategy
Bloomberg had reported in September that Agarwal and Centricus had been trying to raise funds from international investors for such turnaround opportunities. A person familiar with the matter told the publication that they have been planning a fund with a 10-year life span that will use a private equity-type strategy. The aim is to accelerate the privatization of former government companies with professional management.
Centricus co-founder hopes for significant new capital sources
Dalinc Ariburnu, a former Goldman Sachs Group Inc. partner who co-founded Centricus, said in the statement, "India's size means that its transformation should result in significant new capital sources for newly independent Indian companies which will support their development."
What is Centricus?
Centricus was founded in 2016 by Ariburnu and a former Deutsche Bank AG investment banker Nizar Al-Bassam. The company oversees $28 billion in assets, according to its website. In the past, it has advised SoftBank Group Corp. on the creation of its $100 billion Vision Fund. It had also acted as advisor and arranger to SoftBank's $3.3 billion takeover of Fortress Investment Group LLC.
