IIFL sees opportunity in crisis, bets on beleaguered financial sector

Defaults that began in 2017 with the IL&FS Group have triggered liquidity issues across other banks and shadow lenders that now face increased regulatory scrutiny

IIFL Asset Management Ltd, which oversees $3.3 billion in assets, is set to expand on a strategy of investing in the most stressed area of India’s economy: the financial services industry.

The firm aims to eventually attract $1 billion from funds globally to invest in the nation’s privately owned banks, shadow lenders, insurance companies, asset management firms, stock exchanges and credit card providers after expanding an existing $400 million fund in the first half of 2020, said Anup Maheshwari, chief investment officer.

India’s financial services industry is grappling with a 17-month credit crisis, in what has come to be dubbed as India’s