Avendus Capital launches Rs 250 cr structured credit fund

To enhance its footprint in the alternative investment space, financial services provider Avendus has launched a Rs 250 crore structured credit fund which will invest in high quality mid-market firms.
The Category II Structured Credit Fund, launched by Avendus Finance -- the credit solutions arm of Avendus Capital -- is aiming to raise a corpus of Rs 250 crore from investors with a green shoe option of Rs 250 crore.
Looking to yield mid-teens return, the fund, which has received regulator Sebi's approval, will invest in structured credit products to holding and operating companies.
According to Avendus, the fund would invest in companies preferably from the industrials, healthcare and consumer sectors and requires a minimum capital commitment of Rs 1 crore from investors.

"The fund will be a vehicle to provide customised solutions to high quality mid market firms. Structured credit is today well acknowledged as an attractive alternate pool of capital which provides adequate flexibility to business as compared to conventional pool of debt capital," Avendus Finance managing director and CEO Sandeep Thapliyal said in a statement.
Alternative investment fund (AIF) is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy.
Various types of funds such as real estate funds, private equity funds, funds for distressed assets are registered as Category II AIFs. These funds do not undertake leverage or borrowing other than meeting day-to-day operational requirements.