Aditya Birla Sun Life AMC gains 8% on plan to launch 3 private credit funds

Aditya Birla Sun Life AMC plans to launch three private credit funds that cater to substantial growth in the alternative investment market

Aditya Birla Sun Life Asset Management Company (ABSL AMC) shares gained 7.8 per cent in early deals on Wednesday and logged an intraday high of Rs 753 per share. The asset management company's plan to launch three new funds pushed the scrip to the day's high.

At around 10:30 AM, Aditya Birla Sun Life AMC share price was up 7.48 per cent at Rs 750.45 per share on the BSE. In comparison, the BSE Sensex was down 0.05 per cent at 81,775.88, around the same time. 

Aditya Birla Sun Life AMC plan to launch private credit funds catering to substantial growth in the alternative market as it sees a huge market opportunity in the private credit segment at $100 billion with rising interest from ultra high net worth individuals (UHNIs) and Indian family offices from Tier II cities.

 

Private credit funds cater to unlisted companies for their capital needs, such as acquisition financing, capital expansion, and other financing avenues parallel to the banking and non-banking financial company (NBFC) segment.

Further, Aditya Birla Sun Life AMC expects the private credit segment to grow to $3.5 trillion by 2028 in India. The asset management company has targeted Rs 2,500 crore ($298 million) for its performing credit fund, ABSL Structured Opportunities Fund Series 2, for which the first close may be done by early next year. 

The company also aims to raise $300 million through its India Yield Advantage Fund, which will be offered through its entities based in Singapore to raise money from offshore investors. READ MORE 

Aditya Birla Sun Life AMC, in August, had announced the launch of an open-ended index fund to track the Nifty India Defence Index called Aditya Birla Sun Life Nifty India Defence Index Fund, which aims to capitalise on the country's growing defence sector.

The investment objective of the scheme was to provide returns that, before expenses, correspond to the total returns of securities as represented by the Nifty India Defence Total Return Index, subject to tracking errors. READ MORE 

In the past one year, Aditya Birla Sun Life AMC shares have gained 56.3 per cent, compared to the BSE Sensex's rise of 23 per cent during the same period.