Avendus Launches Third Private Credit Fund with INR 4000 Crore

Avendus PE Investment Advisors, the asset management arm of Avendus Group, has launched Avendus Structured Credit Fund III (ASCF–III), its third private credit Category II Alternative Investment Fund. The fund is targeting a total corpus of up to INR 4,000 crore, with an additional green shoe option of INR 2,000 crore.

ASCF–III will focus on investing in secured credit transactions of both operating and holding companies. It will also selectively invest in hybrid structures based on the specific needs of deals. The fund is sector-agnostic but will primarily target industries such as pharmaceuticals, healthcare, manufacturing, consumer goods, chemicals, technology, and B2B businesses.

The fund aims to create a diversified portfolio of 12-18 transactions, targeting a gross portfolio IRR of 16%-18%. It will focus on mature and growth-oriented companies with strong business models, providing customized structured credit solutions to meet their capital requirements.

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Kaushal Aggarwal, Co-founder, Avendus, said, “We are deeply committed to growing our Asset Management business. This platform is built leveraging the core strength of the franchise i.e. deep sector expertise and extensive corporate relationships, with a focus on identifying large high growth strategies. This approach enables us to offer differentiated investment opportunities ahead of the curve while delivering attractive outcomes for our investors. Our Private Credit Funds serve as a prime example of how we are able to scale up a strategy significantly with sustained focus and deep capabilities.”

Anshul Jain, Executive Director, Avendus Structured Credit Funds, said, “Our first two private credit funds have established a strong track record of delivering consistent returns through a validated strategy over the last 7 years. We believe this is an opportune time for us to scale this strategy significantly given the increase in private credit demand from both investors and companies. With ASCF-III, we plan to focus on larger deals and businesses with typical deal sizes between INR 200 – 500 crore, along with leveraging Avendus Group’s strength of having proprietary access to corporates for origination. Combining a specialized multi-faceted underwriting approach with active risk management has enabled us to deliver strong risk-adjusted returns for our investors over multiple cycles.”

The company said that its Avendus Private Credit Platform is one of the earliest and most active private credit platforms in India, completing deals worth over INR 12,000 crore in the last 12 years. It has more than 8 years of investment experience through its NBFC and funds, with total investments exceeding INR 6,000 crore across over 100 deals.

ASCF–I, launched in October 2017, was fully invested in 9 transactions and returned the entire capital by June 2022, achieving a gross portfolio IRR of 18%. ASCF–II, launched in January 2022, is fully deployed across 14 transactions and is expected to achieve a gross portfolio IRR of around 17%.

About Avendus

Founded in 1999 in Mumbai, Avendus Group is a top financial services firm offering Investment Banking, Institutional Equities, Wealth Management, Credit Solutions, and Asset Management. Avendus operates in 10 cities across India, the US, and Singapore. The firm works closely with Indian entrepreneurs to provide unique solutions that help clients achieve their strategic goals.

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