Archive · 24 Jul 2025
SSFs Ride Demand for High-Yielding Distressed Assets
Imagine there are special investment funds called Special Situations Funds (SSFs).
These funds buy up companies or assets that are struggling financially.
They aim to fix these issues and make a profit.
Several companies are launching these funds to invest in these distressed assets.
These funds need at least Rs 100 crore to start and can only invest in Indian companies.
Big investors like Oaktree Capital, Cerberus Capital, and Bain Capital are also involved in similar types of investments.
They are designed for sophisticated investors with a three-year minimum lock-in period.
Special Situations Funds (SSFs) are gaining popularity, with multiple launches in recent months.
These funds invest in stressed assets and capitalize on turnaround situations.
Resurgent India is raising Rs 500 crore in an SSF, and InCred launched an SSF targeting Rs 1,000 crore.
SSFs have a minimum corpus requirement of Rs 100 crore and are exempt from diversification limits.
Active Indian SSF managers include SBI, Kotak, ICICI Prudential, and Aditya Birla Sun Life.
- Who
- Funds like Resurgent India, InCred, Motilal Oswal, and investors like Bain Capital are involved.
- What
- SSFs are gaining popularity and investing in stressed assets.
- When
- Recent months have seen multiple SSF launches.
- Where
- India
- Why
- To capitalize on turnaround situations and special market events.
- What are SSFs?
- Funds that buy stressed assets
- Minimum Corpus Requirement
- Rs 100 crore
- Examples of Funds
- Motilal Oswal, InCred, Resurgent India
- Investment Focus
- Indian firms only
- Lock-in Period
- Three years