Blackstone Inc. (NYSE:BX), the world?s largest alternative asset manager, is exiting the distressed assets space in India by selling its controlling interest in a high-profile, five-year-old joint venture that includes the Tata Group, HDFC Bank and ICICI Bank as partners. Besides Blackstone, the other key shareholders are expected to continue. Mathew Cyriac, the former private equity co-head for Blackstone India, is the frontrunner to buy a controlling 51% stake in International Asset Reconstruction Company Private Limited (IARC) from his erstwhile employer.

The exercise values the target company at around INR 2,000 million, people aware of the proposed deal told ET. Cyriac?s firm Florintree Advisors and Shriram Transport Finance were the final contenders but Cyriac is believed to have pipped the Chennai based financial services firm. Non-bank lenders Capri Global and Authum Investments & Infrastructure Ltd. had also shown initial interest in the company.

Blackstone declined to comment. Cyriac could not be reached for comment.