ASCF-II is a sector-agnostic fund focused on the performant credit space, which provides structured loan solutions to high-quality, growth-oriented companies with differentiated business models, backed by marquee sponsorships, according to the company. The fund plans to invest in safe transactions of operating companies as well as holding companies.
The fund will aim to generate an internal rate of return in the range of 15-16%. Avendus has committed to invest at least 20% of the total fund size and will raise the rest from others.
This will be Avendus’ second structured credit fund with a total target of Rs 1000 crore, including a green shoe option of Rs 500 crore. Potential investors of the fund include family offices and a network of high-net-worth individuals in addition to institutions.
The Avendus Structured Credit Platform has a track record of over ten years, which includes an investment track record of over five decades through NBFCs (Avendus Finance). AIF Category II Fund, Avendus Structured Credit Fund I (“ASCF-I”). In the last five years, it has completed over 50 transactions with a total investment of over Rs 3000 crore in the structured credit space.
Launched in October 2017, ASCF-I invested in 9 transactions, of which five have exited completely, and two have exited partially. It has returned 100%+ capital on a cash-on-cash basis within four years of launch with a portfolio level gross IRR of 17.5-18%.
According to Nilesh Dhedhi, Fund Manager, Avendus Structured Credit Fund, the company, through the new fund, will continue to grow its footprint in the credit investment space and optimize its investment strategy to provide structured credit solutions to large businesses while creating better exposure. Will strengthen- Adjusted returns for our investors.
“A growing economy and the emergence of new and rapidly changing business models have necessitated capital needs that span the spectrum of debt and equity for the Indian corporate sector. It has become increasingly clear that the traditional form of debt The pool may not meet the growing demand for structured credit in India. Being an integral part of India’s entrepreneurial ecosystem and having unique and wide access to marquee businesses in the mid to large corporate segment, Avendus is recognized for its ties, Based on knowledge and experience uniquely placed to address the market.