Bengaluru, which termed the Silicon Valley of India, is expected to see a greater interest for hotel assets from private equity (PE) players, high-net-worth individuals (HNIs) and distressed asset funds as they capitalise on opportunities to invest which is expected to be valued at a discount to their pre-Covid-19 values.

The industry, however, expects sale transactions will likely only occur once travel restrictions are further eased and site visits are facilitated. The city is said to have limited distressed asset sales.

“Owing to the ownership profile, a significant portion of hotel owners in Bengaluru are long-term holders with strong balance sheets and are better placed to weather out the pandemic when compared to other markets in India,” said JLL’s India Hotel Recovery Guide- Bengaluru.

However, a few distressed sales may occur in the market from owners that are unable to service their existing debt. Some owners, who had already taken

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  • Numerous private-equity firms are raising distressed-debt funds as they seek to buy cheap assets that have been throttled by the coronavirus pandemic.
  • Of all the PE firms known for their distressed chops, Blackstone has experienced a series of departures from its credit ranks over the past four or five years. 
  • Many of them were in its distressed division within GSO, after Blackstone decided to shutter its hedge fund and pursue longer-term investments instead.
  • We took a look at where 11 of their top distressed alumni have landed. Nowadays they’re occupying senior leadership roles at Vista and Ares, and staffing hedge funds to pursue trades. 
  • Visit Business Insider’s homepage for more stories.

It’s a hot time for private-equity shops to raise distressed-debt funds, as the coronavirus pandemic tanks companies across energy, retail, and hospitality, presenting opportunities for investors to put capital into businesses they believe will survive and deliver future returns.

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