Nippon Life AIF to raise Rs 1,000 cr for private credit
economictimes.indiatimes.comNippon Life India Asset Management has joined the likes of Centrum and Avendus to capitalise on the demand for private credit amid the tightening of norms by regulated entities such as banks and mutual funds pulling out of promoter funding.
Nippon Life India Alternative Investment Fund, which is set to raise ₹1,000 crore, has already deployed ₹100 crore in two strategic deals and aims to secure an additional ₹1,000 crore through a green shoe option.
Nippon is raising funds from investors like high net-worth investors and family offices.
As credit mutual funds withdraw from the space, Nippon sees an opportunity in growth capital, catering to equity-starved promoters seeking expansion.
The exit of private equity from India's public market has created a pipeline of stabilised stressed assets, driving the need for private credit, said Ashish Chuglani head of alternate investments at Nippon Life India AIF.
Following the trend of fund launches post mutual fund exits, Nippon Life India AIF is looking at investments ranging between ₹50 crore and ₹100 crore per deal at an average maturity of 2.5 to 3 years, and an amortising principal component.
Chuglani said that the strategy is to focus on 10-12 securities, primarily in non-bank end uses within the 'BBB' to 'A' rating spectrum, anticipating mid-teen returns of 14-15%, with a pipeline of three upcoming investments.
