JM Financial debuts private credit fund to raise ₹600 cr in first close

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₹600 crore (around $73 million). The fund is managed by JM Financial AMC as Investment Manager. Mumbai-based JM Financial Group will invest debt capital in local companies via a new fund, adding another asset class to its portfolio that already includes private equity, distressed assets, non-banking finance and mutual funds.

JM Credit Opportunities Fund – 1 targets a final close around June 2024 with a target deployment of Rs 1,500 crore inclusive of co-investments with JM Group, the company said in a statement.  The credit fund will be managed by Pranob Gupta as the Managing Director & CIO.  “As per current discussions, JM Credit Fund and JM Group along with associated co-investments has obtained Rs 600 crore of commitments which will be invested over the current quarter," Gupta said.  The Mumbai-based firm is looking at deal sizes ranging from ₹200- 500 crore and above where JM Credit Opportunities Fund – 1’s cheque sizes will range from  ₹50-100 crore.  Launched in March this year, the category II AIF registered with SEBI is a sector-agnostic private credit fund that aims to capture opportunities from the dislocations in credit markets caused by regulatory differences between banks and NBFCs, for both promoters and operating companies, it further said.  While being sector-agnostic, the fund says it will look at opportunities across consumer, healthcare, manufacturing, conglomerates, B2B and services, renewables ESG oriented companies and sectors.  “This fundraise marks the first milestone of our Credit Fund business. It underscores the commitment of the franchise to the credit business, which is currently active through the NBFCs (non-banking financial companies), ARC (asset reconstruction company) and distressed fund