Venture debt has moderate risk, yet offers better returns: Rahul Khanna

Venture debt provider Trifecta Capital will raise more capital than it had targeted for its maiden fund. Rahul Khanna, the firm's managing partner tells Ranju Sarkar how venture debt is becoming a viable option for both investors and start-ups in India. Edited excerpts.  

Are investors (LPs) seeing venture debt as a more viable option than venture capital, like structured debt in realty?

Each asset class has its own risk-reward profile and most institutional investors have created an asset allocation framework to achieve their target returns by investing across multiple asset classes. As interest rates have moved downwards,