Northern Arc, a private debt fund manager has announced the first closing of its latest fund round, Northern Arc India Impact fund at $23 mn. This is the eight debt fund by Northern Arc.

The fund, which targets to achieve over $100 million, has managed to receive $23 million from, a set of high-powerful investors to mark its first close.

The investors that participated in the closing fund include PG Impact Investments, a leading global impact investment firm backed by global private markets investment manager Partners Group, Anthos Fund and Asset Management from the Netherlands and Calvert Impact Capital, the United States-based institutional impact investor.

The company aims to invest over Rs 1,000 crore of long-term capital in financial institutions. Over a period of five years, the funding will be invested in a number of debt instruments including senior and subordinated debentures, commercial paper, and other permissible market instruments.

It also plans to use the fund to make 15-20 investments with average deal sizes of $3-5 million across its focus sectors of microfinance, small business finance, vehicle finance and agro-business finance in the next 12-18 months.