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JC Flowers-backed SICOM to launch funds to invest in real estate, distressed assets

Mumbai-based non-banking finance company (NBFC) SICOM, which counts American private investment firm JC Flowers as a shareholder, is looking to get into alternative investment funds (AIF) management with two funds.

It has applied to get registered under capital market regulator SEBI's AIF norms and intends to invest in real estate projects and distressed assets through two vehicles, according to The Economic Times citing the company's managing director.

It aims to scoop Rs 1,000 crore across the two funds that would be used to cut collateralised credit deals at 14-18 per cent interest rates.

The company intends to pool in the funds from private equity funds and other financial services institutions, said Ashish Kumar Sinha, MD of SICOM.

Founded in 1966, SICOM is a joint venture between Maharashtra government and US-based financial services-focused private equity fund JC Flowers. JC Flowers had picked around 36 per cent stake in the firm for around $100 million in FY08, at the peak of the previous bull-run in the stock market.

It offers both fund and non-fund based financial services. Initially it was focused on industrial development in its home state but over the last two decades has ventured outside Maharashtra too.

SICOM has five offices in Delhi, Nagpur, Pune, Aurangabad and Nashik.

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