Most of the funds will reportedly be raised from global investors, while SBI and Caryle will put in initial capital of Rs 1,000 crore each.
The fund, a partnership between SBICAP Ventures and Carlyle, may raise as much as $1.5 billion, sources told the publication.
This is the first time both Carlyle and SBI have started a fund focused on India’s stressed assets market.
Moneycontrol could not independently verify the story.
Carlyle and SBI have not yet responded to Mint’s requests for comment.
“Carlyle and SBICAP have signed an agreement in the last week of February to set up a separate asset management company that would exclusively look at distressed deals in India," a source told the paper.
Most of the funds will be raised from global investors, while SBI and Caryle will put in initial capital of Rs 1,000 crore each, the report said.
“The fund would primarily evaluate SBI’s stressed assets, but will be open to investing in any stressed case where turnaround is possible," another source told the paper.The proportion of stressed corporate loans in India might rise to 9.9 percent of total loans by September 2020, according to the Reserve Bank of India’s Financial Stability Report in December.