Fin-tech firm 'Avendus' unveils Rs. 4,000 crore Structured Credit Fund III
Avendus Structured Credit Fund III (ASCF-III), the third private credit offering from Avendus PE Investment Advisors, aims to raise up to Rs. 4,000 crore, with a Rs. 2,000 crore green shoe option.
The fund will make investments across a range of industries, including manufacturing, consumer goods, healthcare, and technology. Securing credit for operating and holding companies will be the main focus, though some hybrid structures will also be taken into account.
Launched in 2017, Avendus' first private credit fund, ASCF-I, produced an 18% IRR. By 2022, investors received their entire capital back. With an expected IRR of 17%, the second fund, ASCF-II, was launched in 2022 and has been fully deployed across 14 deals.
The Avendus Structured Credit Funds Executive Director, Anshul Jain, states that ASCF-III will generally consider deals with values between Rs. 200 crore and Rs. 500 crore. To ensure greater deal flow, the fund will leverage the exclusive corporate network of the Avendus Group.
The fund's objective is to achieve a gross portfolio internal rate of return (IRR) of 16% to 18% by constructing a diversified portfolio consisting of 12 to 18 transactions. Over the past 12 years, Avendus' private credit platform has completed deals worth over Rs. 12,000 crore, making it one of the busiest in India.
These results highlight Avendus' capacity to manage several cycles and provide investors with consistent, risk-adjusted returns.
Regarding the overall situation, Managing Director of Avendus Finance Nilesh Dhedhi stated that private credit is becoming a more flexible financing option for India's mid-market businesses. He pointed out that over the previous three years, private credit transactions have exceeded $20 billion, closing the gap between traditional debt and equity.
The fund will make investments across a range of industries, including manufacturing, consumer goods, healthcare, and technology. Securing credit for operating and holding companies will be the main focus, though some hybrid structures will also be taken into account.
Launched in 2017, Avendus' first private credit fund, ASCF-I, produced an 18% IRR. By 2022, investors received their entire capital back. With an expected IRR of 17%, the second fund, ASCF-II, was launched in 2022 and has been fully deployed across 14 deals.
The Avendus Structured Credit Funds Executive Director, Anshul Jain, states that ASCF-III will generally consider deals with values between Rs. 200 crore and Rs. 500 crore. To ensure greater deal flow, the fund will leverage the exclusive corporate network of the Avendus Group.
The fund's objective is to achieve a gross portfolio internal rate of return (IRR) of 16% to 18% by constructing a diversified portfolio consisting of 12 to 18 transactions. Over the past 12 years, Avendus' private credit platform has completed deals worth over Rs. 12,000 crore, making it one of the busiest in India.
These results highlight Avendus' capacity to manage several cycles and provide investors with consistent, risk-adjusted returns.
Regarding the overall situation, Managing Director of Avendus Finance Nilesh Dhedhi stated that private credit is becoming a more flexible financing option for India's mid-market businesses. He pointed out that over the previous three years, private credit transactions have exceeded $20 billion, closing the gap between traditional debt and equity.
.jpg "Innovating Legal Solutions to Safeguard your Business")
