Avendus raises Rs 432 cr for its AIF Cat II fund from family offices, HNIs

NEW DELHI: Avendus PE Investment Advisors, an asset management arm of Avendus Group, on Wednesday said it raised Rs 432 crore in the first close of Avendus Structured Credit Fund II, a category II, Alternative Investment Fund (AIF), last week. The fund is targeting a total corpus of Rs 1,000 crore including the green shoe option of Rs 500 crore.

The capital commitment primarily came from family offices, high net worth individuals (HNIs) and Indian financial institutions. The fund will deploy the capital in a differentiated credit strategy focused on providing structured credit solutions to high quality, growth-oriented companies with differentiated business models, backed by marquee sponsors, Avendus said.

The sector agnostic fund plans to invest in secured transactions of operating companies as well as holding companies alongside Avendus Finance, the NBFC arm of Avendus. With the latest fund, Avendus said it will now be targeting deal size of Rs 150-250 crore. The fund is evaluating multiple deals in sectors such as IT services, B2B services, specialized manufacturing and healthcare, it said.


The first structured credit fund, Avendus Structured Credit Fund I (ASCF I) is at the end of its life cycle. Launched in October 2017, it was fully deployed across nine transactions, and eight out of nine transactions have been fully exited till date. It has returned more than 115 per cent capital cash on cash basis and is currently tracking a portfolio level gross IRR of 17.88 per cent, the company said.

“Private credit market in India has seen a huge uptick over the past 6-9 months. This is also an indication of the attractiveness of structured credit as a separate investment category amongst investors. Till now, our fund has received commitments from 100+ investors including four institutions and we hope to continue the same momentum over the next 2-3 months,” said Nilesh Dhedhi, Fund Manager, Avendus Structured Credit Fund.