After IL&FS & Covid, NBFCs have ceded space to pvt credit funds: N Dhedhi

Nilesh Dhedhi, head of structured credit, Avendus Finance explains the nuts and bolts of these investment vehicles which are aimed at sophisticated investors

Private credit funds, a source of non-bank debt capital for private companies, are pegged to grow exponentially over the next five years. Nilesh Dhedhi, head of structured credit, Avendus Finance, in an interview to Samie Modak, explains the nuts and bolts of these investment vehicles, which are aimed at sophisticated investors, Edited excerpts:

What is a structured credit fund? What are the latest trends in this space?

Structured credit can largely be described as mid- to high-yield (broadly in the range of 12-18 per cent) non-bank lending to private companies in the form of debt or debt-like instruments.

Private credit