ASK wealth advisory arm unveils 1st private credit fund

Mumbai: ASK Private Wealth, the wealth advisory and family office arm of ASK Group, has joined the likes of Avendus and Vivriti by launching its first private credit fund to raise up to ₹1,000 crore to lend to corporates in the performing credit space.

ASK has hired Shantanu Sahai former head of debt at Nomura India as senior managing partner and head of the fund.

The fund has received regulatory approval from the Securities and Exchange Board of India under the Alternative Investment Fund (AIF) Category II. The fund will invest across both operating companies as well as promoter holding companies but will avoid distressed, real estate, utilities, state-owned or venture funding situations. It is a closed-ended fund, with a tenure of five years from the first close.


"Our private credit fund offers clients and investors an attractive alternative to traditional fixed-income investment options like market-linked debentures (MLDs), debt mutual funds, real estate investment trusts (REIT), or infrastructure investment trusts (InvIT)," said Sahai. "With the fund's performance being largely uncorrelated to equity, it provides true diversification to portfolios of our clients."

The private credit market in India is booming as AIFs move their attention away from distressed asset deals towards special situations, bridge to IPO, and securitisation transactions. This is targeted to offer better returns to investors. Generally, performing credit funds in India are looking at a return of 14-16%.