Etonhurst Capital Partners

About Us

Etonhurst Capital Partners, LLP is an India focused real estate asset management firm specializing in direct lending and opportunistic private credit investing. It was founded in 2019 and is headquartered in Mumbai, India. ECP’s senior management has a wealth of experience through multiple market cycles, averaging over 20 years of experience in real estate fund management since its inception in India. ECP’s senior management team owns 100% of the Firm. ECP and its team of highly skilled and networked fund managers are in the forefront of such market transformation.

Leveraging over two decades of experience in the real estate sector across multiple asset classes and over several investment cycles the team has a unique advantage to underwrite investment opportunities to generate superior risk-adjusted returns. The founders have very strong promoter relationships, providing exceptional off market deal sourcing opportunity. The team has insights to industry and company level value drivers, insights in post-acquisition asset management to extract most value out of the assets and insights into exit options.

Strategies

Credit

All credit strategies of Etonhurst are centred around two fundamental concepts:

Focus on downside and principal protection

Credit First–Zero Loss mentality

Our credit strategy is to invest in ill-liquid instruments both primary, i.e., directly sourced from borrowers and secondary, i.e., direct acquisition of loan books from origination source.

Each of our credit strategies are derived keeping in mind our investment philosophy, seeking consistent risk adjusted higher returns through data driven analysis and market insights.

Portfolio Acquisition

Our strategy is to buy wholesale real estate loan books from deal originators such as a Non-Banking Finance Company (NBFC) at a discount to book value. These are opportunistic investment opportunities often triggered by a special situation. Etonhurst will acquire such loan books at a discount and actively manage the underlying loans and act as a collateral manager. The underlying loans have to be senior secured in nature and similar to our senior loan strategy. Etonhurst will combine its asset management capabilities with fresh infusion of capital where required to generate superior risk adjusted returns.

Private Credit

Our strategy will provide structured credit solutions for mid-market housing projects at a brownfield stage. These will be senior secured debt structures with downside protection and an upside sharing for equity linked return kicker. Typically will be flexible structures with tenors matching the project lifecycle. It will allow borrowers that are looking to replace and refinance traditional credit with a customized and structured senior loan to best suit their situation. Etonhurst’s private credit strategy seeks to achieve superior risk adjusted returns by leveraging on such value driven approach to lending.

Last In First Out Loans (LIFO)

Our strategy will focus on last mile funding for projects that require funds to complete construction and help in realising locked receivables and unsold inventory. LIFO loan structure will have a preferred pay out from project cash flows to ensure return of capital and associated returns.

Senior Secured Loans

This strategy will focus on funding early to mid-stage construction loans to developers against launched projects with all approvals in place. Our in-depth understanding of the underlying project and the market is critical to credit risk management and analysis.

Distressed Debt

Disruption or inefficiencies in the market often lead to situations when firms that aren’t nimble enough to adapt combined with weaker capital structure often succumb to financial distress. Poor lending standards and prolonged extension of such bad loans to avoid Non Performing Assets; leaves very little incentive for equity holders to honour contractual obligations leading to defaults. Complex regulatory framework and myriad legalities make it extremely difficult to resolve such situations. Our strategy will be to purchase such distressed debt at a bargain from the lender; combine our extensive experience in distress debt management to achieve resolution and unlock value.