Vivriti launches ₹2,000 cr credit AIF fund

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₹2,000 crore in mid-sized companies.The fund looks to raise base capital of ₹1,500 crore and another ₹500 crore as a greenshoe option at a yield of 15-16%. The AMC looks to raise money from existing limited partnerships (LPs) and complete the first close by either June-end or early July.The fund will invest in mid-market companies, which are profitable, have good cash flows, and will use these funds for growth purposes.

Healthcare, infrastructure, engineering, and consumer-led businesses are some of the sectors that the fund is looking at investing in.“We expect a significant amount of repeat from existing LPs, given that they've had a good experience both in terms of returns as well as in seeing their money being made to work quickly," said Vineet Sukumar, founder and managing director, Vivriti Group. "The current market is fairly conducive after the break between December and March.

We think that there is a fair amount of tailwind that is there across each category that we are tapping into, which is Ultra HNI (high networth individuals) Chennai family offices, corporates as well as insurance companies.Banks and regulated investors are now completely out on account of the 18 December circular," he added.In December, RBI ordered banks and non-bank lenders to sell their investments in AIFs, which had further invested in companies to which the lenders had given loans in the previous 12 months; otherwise, they had to make 100% provisions against these investments.In March 2024, the regulator relaxed the norms after it recieved representations from industry bodies. It said lenders needed to provide for only the amount the AIF invested in the debtor company, and not the entire amount the lender invested in the AIF.