Blackstone’s Exit; Mathew Cyriac Set to Acquire 51% Controlling Stake in IARC

Mathew Cyriac, a former executive at Blackstone, is said to acquire the ex-firm’s 51% stake in International Asset Reconstruction Company (IARC), signalling Blackstone’s departure from the distressed assets sector in India. 

This joint venture, established six years ago, includes prominent entities such as Tata Group, HDFC Bank, and ICICI Bank; Cyriac, who previously served as the PE co-head for Blackstone India, is identified as the frontrunner in this transaction, which values IARC at Rs 200 crore, according to insiders familiar with the matter.

While Blackstone is divesting its controlling interest, other significant shareholders are expected to maintain their positions. Cyriac’s Florintree Advisors and Shriram Transport Finance emerged as the final contenders, with initial interest also shown by non-bank lenders Capri Global and Authum Investments & Infrastructure in IARC.

Cyriac’s association with Blackstone dates back to 2006, when he joined as the second employee in India; however, in February 2017, he departed to embark on his entrepreneurial journey after overseeing the firm’s initial leadership transition in the country.

Established in 2002 by Arun Duggal and MS Verma, the Blackstone Tactical Opportunities (BTO) Fund acquired a controlling interest in IARC in September 2017 with a current investment pool of $40 billion; BTO operates from its fourth fund of $10 billion. Despite BTO’s recent reduction in its Asia presence, the fund had invested approximately $75 million directly with IARC as a JV partner.

IARC’s net worth is anticipated to be around Rs 300 crore, with Rs 180-190 crore in cash reserves; notably, Duggal retains a 5% stake in the company, while the Tata group and the two major private banks are set to continue their involvement in the Asset Reconstruction Company.

Who Is Mathew Cyriac

Mathew Cyriac, now the Co-founder and Chairman designate of Florintree Advisors, served as a Senior Managing Director at the Blackstone Group, holding the position of Co-Head of Private Equity at Blackstone Advisors India Private Ltd. until February 2017. 

Cyriac’s diverse professional background includes roles such as Head of Corporate Development and Strategy at iGate Global Solutions and Vice President in the Investment Banking Group at CSFB. 

He holds a Post-Graduate Diploma in Management from the Indian Institute of Management, Bangalore, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Madras.

International Asset Reconstruction Company Private Limited (IARCPL)

IARCPL is a non-governmental company in India established in 2002 under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The company specializes in acquiring and resolving financial assets through various means. 

IARCPL engages in the acquisition and resolution of distressed financial assets. The company is involved in restructuring financial assets and facilitates one-time settlements, providing a resolution for financial obligations.

The company is involved in the sale of acquired assets as part of its resolution process. IARCPL utilizes legal avenues to address and resolve financial issues associated with distressed assets.

The company provides receivership services for banks and judicial institutions in Core Banking Solutions, Collection Management Systems, and Legal and Litigation Systems; headquartered in Mumbai, Maharashtra, India, IARCPL plays a crucial role in the resolution and management of financial assets, contributing to the overall financial ecosystem in the country.