Avendus launches Rs 4,000 cr Structured Credit Fund III

Avendus PE Investment Advisors, the asset management arm of Avendus Group, has announced the launch of its third private credit fund, Avendus Structured Credit Fund III (ASCF–III), a Category II Alternative Investment Fund. The fund targets a total corpus of Rs 4,000 crore, including a green shoe option of Rs 2,000 crore.

ASCF–III will focus on secured credit transactions for both operating and holding companies, with a few investments in hybrid structures tailored to deal requirements. Aiming for a gross portfolio IRR of 16%-18%, the sector-agnostic fund will invest in industries such as pharmaceuticals, healthcare, manufacturing, consumer, chemicals, technology, and B2B businesses.

The fund plans to have a diversified portfolio of 12-18 transactions, focusing on capital needs through customised credit solutions for mature and growth-oriented companies. The typical deal size will be between Rs 200 – 500 crore.


ASCF–I, which launched in October 2017 was fully deployed across 9 transactions and returned capital back in June 2022, achieving a gross portfolio IRR of 18%. ASCF–II, which launched in January 2022, is fully deployed across 14 transactions, tracking an expected gross portfolio IRR of 17%.