**ChrysCapital Eyes Increased Risk in Buyouts and Restructuring**
ChrysCapital is reassessing its risk strategy, inspired by the success of other firms that have ventured into riskier investments. “We’ve observed other firms taking risks that we weren’t initially comfortable with, but they yielded significant returns. Now, we are exploring specific scenarios where we can also embrace greater risk,” stated Chatterjee, who oversees fundraising and limited partner relationships. The firm is becoming more open to backing companies with weaker operations, aiming to step in, implement changes, and create value. This shift comes as private equity firms actively seek buyouts of traditional businesses that could yield higher returns post-restructuring.
Bharat Anand, a senior partner at Khaitan & Co, noted that private equity firms typically aim for an alpha of at least 4-5% above public market returns, with strategies varying by sector, deal size, and capabilities. “Managers are fundamentally driven by the need to maximize returns and will not hesitate to restructure at the time of investment or exit if it enhances outcomes,” he added. Restructuring deals often require significant stakes and strong control rights to justify their higher costs and tax implications.
Chatterjee emphasized that India is now primed for buyouts, with more business owners willing to relinquish control. The firm is also considering restructuring in minority investments. “If an entrepreneur recognizes the issues and is committed to addressing them, that’s a business we could support,” he remarked. Anand reiterated that the need for restructuring is a means to achieve better returns, regardless of whether the investment is a minority stake or a full buyout.
**ChrysCapital’s Return to Manufacturing**
After a hiatus of nearly five years, ChrysCapital is re-entering the manufacturing sector. Chatterjee explained that the firm had previously shifted focus to IT services, financial services, and healthcare, which offered more favorable risk-reward scenarios. However, the landscape has changed, with supply chains moving out of China, an expanding labor force in India, and government initiatives promoting domestic manufacturing. “The next phase of India’s growth must be driven by manufacturing,” he asserted.
The firm is currently evaluating opportunities in electronics manufacturing services, components, and data center supply chains—key elements of the AI revolution. ChrysCapital has already made a significant investment; in September 2025, ILJIN Electronics India, a subsidiary of the Amber Group, secured ₹1,200 crore from ChrysCapital and InCred Growth Partners.
As ChrysCapital navigates this evolving landscape, its strategic focus on risk and restructuring positions it to capitalize on emerging opportunities in India’s manufacturing sector.
**FAQ**
**What is ChrysCapital’s new strategy regarding risk?**
ChrysCapital is increasing its risk appetite by exploring investments in companies with weaker operations, aiming to restructure and create value, particularly in the manufacturing sector.
