Vivriti Asset Management raises securitisation fund with investment from IFC, M&G Catalyst for AIF

Vivriti Asset Management has raised anchor commitment from M&G Catalyst and secured debt financing from the International Finance Corporation (IFC) for its asset-backed securities (ABS) fund, Vivriti India Retail Asset Fund. The fund, which has a target size of $250 million, has raised $106 million from these two investors.

The fund will generate a return of 12% in rupee terms, which translates to around 8% in dollar terms. Equity will make more than 8% return while debt will be lower.

M&G Catalyst has provided equity investment for 10 years, while the IFC has extended a debt exposure for a term of four years.


Through this fund, Vivriti Asset Management is looking to invest Rs 14,000-15,000 crore over the ten-year period. It will direct international capital towards non-banking financial companies (NBFCs) operating in sectors such as micro, small and medium enterprises finance, used vehicle finance and microfinance.

With India's ABS market valued at around $40 billion, there is immense potential for growth as international participation has been very low, according to a company executive.

“In countries like South Korea, China, Australia and the US, international participation in ABS markets is common,” said Vineet Sukumar, managing director, Vivriti Asset Management. “However, India's ABS market has predominantly relied on domestic investors. Vivriti aims to create a proof of concept by bringing in renowned global investors.”