M&A

M&A

JCF ARC in talks to merge into Assets Care & Enterprise

Economic Times  

JC Flowers Asset Reconstruction Company (JCF ARC) is in talks to merge its operations with Delhi-based Assets Care & Enterprise (ACRE), an entity backed by Ares SSG Group. The proposed transaction is structured as a stock-swap deal, which would result in JCF ARC winding down its operations in India and surrendering its ARC licence to the Reserve Bank of India (RBI).JCF ARC is a US-based firm that entered the Indian market after acquiring a stressed loan portfolio from Yes Bank in 2022. The company has since resolved non-performing assets totalling nearly INR 38,000 crore.Under the terms of the proposed deal, JCF ARC would retain a diluted stake in the combined entity, while operational control and the responsibility for managing its residual loan portfolio-valued at approximately INR 2,000 crore in security receipts-would transition to ACRE.

Between Sep 2014 and May 2016, ACRE India had attracted about $14 M from Ares SSG, Capital Optima, Others.For FY25, ACRE India had reported about INR 287 Cr in Operating Income and about INR 122 Cr in PAT.