Extracts from the Economic Times interview As firms like Everstone and Goldman Sachs, or Apollo and ICICI get more active, we will see the growth of a mezzanine market.
We in KKR are in no hurry and will focus on quality deals. There will be an increasing need for alternate capital and we see that even the government is relaxing norms to facilitate capital-raising. We have just had the new takeover code, relaxation of ECB norms and we might see some headway on the FDI side too. These are all positives to ensure long-term capital flow into the economy.
We are dealing with promoter/companies with who you need to identify the best terms as they have many options. At the higher end of credits you have lesser bargaining power. But we make sure we structure the deal in a way that the company pays a minimum coupon, with some kind of floor to total returns and sharing some upside, driven by EBIDTA and equity. We find this as meeting both parties' objectives. So we have invested in co...