Insights into Recent Progress in Stressed Asset Resolution: A Perspective by Shyam Maheshwari of SSG Capital
Shyam Maheshwari, a founding partner of SSG Capital Management, holds a key role on the Ares SSG investment committee and serves as a director of Ares SSG Singapore. His primary focus involves originating and assessing investment opportunities in India and various regions across Asia. Notably, Maheshwari is also an Associate Member at the Institute of Chartered Accountants of India. His professional journey commenced in 1999 at Lehman Brothers, accumulating a rich 17-year background in deal origination, analysis, and investment within the industry. During his tenure at SSG Capital, he significantly contributed to deal origination, analysis, investment endeavors across Asia, and the expansion of business in India.
In a recent discourse, Shyam Maheshwari delves into his insights concerning the resolution of stressed assets and the latest developments in this domain. He underscores that the current landscape encompasses a $4.5 billion stressed assets platform. Highlighting India’s substantial role in their investment portfolio since 2009, he notes the country’s economic growth trajectory supported by resources, skilled talent, capital infusion, and robust processes. Maheshwari emphasizes that achieving success in the Indian market demands persistent effort.
Shyam Maheshwari reveals that although foreign investors have conducted 14 site visits to steel facilities in the past two years, no deals have been finalized in India thus far. He underscores the value of learning gained during this process and emphasizes the need for foreign investors to continually refine their execution strategies and remain committed to investing in India. He further discusses the challenges encountered within the country, emphasizing the significance of a fundamentally sound asset for a successful investment and highlighting potential mismanagement risks in operational assets.
According to Maheshwari, a key criterion for investment is the operation of completed assets. He cites an example related to the steel industry, explaining how changes in government policies influenced steel prices in India and China. He elaborates on the significance of scrutinizing assets, particularly non-operational ones, during periods of evolving legislation, such as the absence of a restructuring process before the enactment of the Insolvency and Bankruptcy Code.