The wealth and asset management division of InCred Financial Services Ltd., InCred Asset Management, has announced the first closure of its first credit fund, InCred Credit Opportunities Fund I (ICOF I), which aims to raise about Rs 300 crore.
According to a statement from the firm, the category II alternative investment fund’s (AIF) entire capital is aimed at Rs 500 crore with an additional Rs 500 crore greenshoe. By the middle of next year, the ultimate conclusion of the ICOF I, which launches InCred’s Alternatives platform, is anticipated. After receiving Sebi clearance in August of this year, the fund experienced involvement from notable family offices and high-net-worth individuals (HNIs) that exceeded 60% subscriptions in the first closure within three months.
According to the business, ICOF I, the first alternative offering from InCred Asset Management, will give developing corporations, financial institutions, and platforms flexible secured loan financing. A unique fund strategy and a growing investor appetite for high-yield debt products as an effective diversification play against the backdrop of volatile equity markets, it added, have driven the strong demand for this yield-oriented fund. Over the next 24 to 36 months, the fund is anticipated to make 20 to 25 investments, building a portfolio with a 4-5% allocation to each deal.
“We plan to invest, on average, between Rs 15 and Rs 25 crore in each deal, in Series C and D stage unlisted companies. According to Saurabh Jhalaria, chief investment officer (CIO) – of alternative credit strategies, InCred Alternatives has so far funded three investments in the consumer retail, EV (electric vehicle), and Fintech space over the past two weeks. The fund has a pipeline of approximately 6-7 transactions over an upcoming couple of months, he continued. Our goal is to fund businesses whose balance sheets have a working capital funding shortfall, according to Jhalaria, who also oversees InCred Financial Services’ SME and education lending divisions. According to him, all of the fund’s investments will be in senior secured operating high-yield debt held by businesses in the consumer retail, EV, fintech, and SaaS (software-as-a-service) sectors. The existing array of strategies at InCred Asset Management includes multi-cap, healthcare, and manufacturing funds with an Indian focus. According to Jhalaria, InCred Alternatives will soon introduce new fund strategies in addition to a follow-up series of credit strategies. The InCred Group is a diversified financial services company that offers investment banking, wealth management, asset management, institutional equities, and analytics-based lending through InCred Capital.
InCred Finance, a tech-enabled lender founded in 2016 by Bhupinder Singh, offers consumer, small business, and education lending through both online and offline methods.
InCred and American private equity behemoth KKR successfully merged their retail and micro, small, and medium-sized enterprise (SME) loan businesses in July of this year. Investcorp, Oaks, Moore Capital, Elevar Equity, and Paragon Partners are a few of the equity investors in InCred Group. Anshu Jain, a British-Indian businessman and investor who was formerly the head of Deutsche Bank, Ranjan Pai, and Gaurav Dalmia, the founding chairman of Landmark Holdings (Dalmia Group), among others, are also investors in the Mumbai-based financial services company.
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