Singapore's RV Capital marks first close of India private credit fund

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₹400 crore and a green-shoe option for a similar amount. “Performing credit" means lending to companies that are running their business on an ongoing basis, have a long track-record and are profitable at the Ebitda level. For the first close milestone, the asset manager has raised about ₹100 crore in commitments from a mix of domestic and offshore investors including high- and ultra-high-net-worth individuals, and family offices.

It aims to mark another fund close by next month, though it did not disclose the figure at which it will hit the milestone. It is aiming to raise about half of the target corpus by the end of the year, RV Capital said. “As a global entity, we have observed a clear upward trend in the market's appetite for alternative financing options and an increasing number of private credit deals that are more attractively priced in terms of risk-adjusted returns," said Shyamal Karmakar, India head and chief investment officer, RV Capital India.

“The genesis of “Plus" in the Fund’s name is from the listed bonds which have the potential to generate similar returns as private credit and help to optimise risk-adjusted returns," he added. So far, it has made two investments from the fund. While it did not disclose the names of these companies, it said one was in a holding company of a large Indian conglomerate and the other in a solar energy platform, with marquee investors holding a majority stake.