Avendus PE Investment Advisors Launches INR 4,000 Cr Private Credit Fund Pharmaceuticals, healthcare, manufacturing, consumer products, and technology are just a few of the industries that the fund is well-positioned to serve.
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Avendus PE Investment Advisors has unveiled its third private credit fund, Avendus Structured Credit Fund III (ASCF-III), targeting a corpus of up to INR 4,000 crore, inclusive of a green shoe option of INR 2,000 crore.
The fund is poised to cater to a wide range of sectors, including pharmaceuticals, healthcare, manufacturing, consumer goods, and technology.
ASCF-III will focus on secured credit transactions for operating and holding companies, alongside select hybrid structures, aiming for a diversified portfolio of 12-18 transactions with a target gross portfolio IRR of 16%-18%.
"We plan to focus on larger deals and businesses with typical deal sizes between INR 200 – 500 crore. Leveraging Avendus Group's proprietary corporate access, combined with a specialized underwriting approach, enables us to deliver strong risk-adjusted returns," stated Anshul Jain, Executive Director, Avendus Structured Credit Funds.
Avendus' private credit platform, among India's most active, has executed deals worth over INR 12,000 crore in 12 years. Its previous funds have demonstrated consistent success:
- ASCF-I, launched in 2017, delivered an 18% IRR and fully returned capital by 2022.
- ASCF-II, initiated in 2022, is fully allocated across 14 deals, with an anticipated IRR of 17%.
"India's mid-market enterprises are increasingly leveraging private credit as a powerful financing solution, especially when flexibility provided by capital becomes a critical aspect. With private credit deals surpassing USD 20 billion over the past 3 years, this asset class is bridging a critical financing gap which existed between traditional debt and equity, making it one of the fastest growing asset classes," said Nilesh Dhedhi, Managing Director of Avendus Finance.
"As the private credit market matures, it offers both investors and businesses a newer avenue to achieve growth and strategic adaptability in an increasingly sophisticated financial ecosystem." Dehadi added.
