CDPQ Partners with Piramal to Deploy $ 300 Million for Private Credit Financing in India

Caisse de dépôt et placement du Québec (CDPQ), a global institutional investor, partners with one of India’s most diversified financial services firm - Piramal Asset Management, to deliver a platform of $300 million to target private credit financing opportunities in the country. Towards the development of this platform, CDPQ will be contributing 75 percent of the investment while Piramal will commit the remaining.

This private credit financing platform will be offering private credit solutions to companies across various industries in India, including manufacturing, consumer, industrial, healthcare, pharmaceuticals, and logistics, among others. The partnership is aligned with both CDPQ’s investment strategy in a country with significant long-term economic growth potential and Piramal’s direct lending strategy to mid-market companies & major corporations.

Speaking about this strategic partnership, Ajay Piramal, Chairman, Piramal Group, says, “We are excited to announce the launch of a structured credit platform with our long-term partner and marquee global investor, CDPQ. This partnership is yet another affirmation of the confidence that top-notch institutional global investors have in our track record and future growth trajectory. This platform aims to leverage the significant market

Through our partnership, we are able to support growing businesses and invest in India’s thriving entrepreneurship

opportunity for alternative pools of capital to provide valuable solutions in the private credit space.”

“Piramal Enterprises is a like-minded partner with a solid market position and deep knowledge of India’s industry and financial sector. This is another opportunity for CDPQ to work with the best partners in a market where we see many possibilities over the long term,” avers Anita M. George, Executive Vice-President & Head, Strategic Partnerships & Growth Markets, CDPQ. She adds to it, “Through our partnership, we are able to support growing businesses and invest in India’s thriving entrepreneurship.”

CDPQ has been extensively partnering with Piramal Enterprises since 2017 and most recently has deployed $ 250 million in its compulsory convertible debentures. CDPQ’s real estate subsidiary, Ivanhoé Cambridge, has also committed US$250 million towards a co-investment platform with Piramal Enterprises Limited (PEL) to provide long-term equity to blue-chip residential developers.

“The partnership will focus on performing credit and look to invest in companies with a scalable business model that have demonstrated strong execution capabilities, robust cash flows, a validated repayment history with lenders, and that require capital to support the continued growth of their businesses,” concludes Khushru Jijina, MD, Piramal Capital & Housing Finance.