Advent International’s latest loan transaction
is groundbreaking on many fronts – it’s
the first to share similarities with a masala bond, an equity
derivative and a margin loan. But it’s also the
latest example of a growing trend that sees private equity
firms launch bespoke ways to secure new financing.
Private equity has had a rebirth in the Indian market in the
past 12 to 18 months. Compared to other so-called growth
markets, the Asian country is politically stable, and benefits
from good liquidity and a growing pool of private
The Indian government has regulated the offshore financing
market tightly, with a majority of companies prevented from
raising funding or borrowing money abroad until recently. The
use of shares in an Indian corporate to raise debt was
prohibited until last year.
The US investment giant’s synthetic margin loan
facility is the first in India to monetise listed...