Mumbai: AION Capital Partners Ltd, an India-focused special situation fund, along with former senior executives of GE Capital Pramod Bhasin and Anil Chawla, announced on Thursday that it has closed the acquisition of the commercial lending and leasing business of GE Capital in India. The terms of the transaction were not disclosed.
AION is an India-focused fund established by an affiliate of Apollo Global Management, LLC together with ICICI Venture Funds Management Co. Ltd. The AION Fund with approximately $825 million in committed capital is currently one of the largest private equity funds in India.
Bhasin was the founder of Genpact and former chief executive of GE Capital India and Asia; Chawla was the former head of GE Capital’s Commercial business and DE Shaw India.
Mint had reported on 2 March that AION along with Bhasin and Chawla was acquiring the financial service businesses of GE Capital India.
Started in 1993, GE Capital’s non-banking financial company in India has served more than 10 million corporate and consumer finance customers. The business has three key verticals: auto, healthcare (medical equipment) and corporate loans. The new firm will build on the legacy with the use of analytics, technology platforms and a great management organization to differentiate itself across all segments, a statement said.
“There have been significant developments in the current environment that will drive tremendous change particularly in the financial services market. The current “India Stack” of Aadhaar coupled with mobile accessibility as well as the substantial increase in financial inclusion via the opening of millions of new bank accounts will bring a significant number of new people into the financial marketplace,” the statement said, adding India’s growth rate will also drive rising demand from currently underserved segments such as small and medium scale enterprises across smaller towns in India.
“The GE Capital businesses have a rich legacy of financial products and services, coupled with a highly experienced management team with the best traditions of GE. We have an opportunity to combine the best of this legacy with new analytical capabilities and technologies to provide excellent customer service with exceptional speed and customization,” said Bhasin.
Analytics will be used across the board for risk management, effective marketing and sales as well as for distribution strategies, he added.
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