Mumbai-based Avendus Capital plans to bring its debut direct lending fund to the market this year with a target of INR5 billion ($73 million; €68 million), according to local media reports.
The fund will target private credit investments in growth and mid-market companies, excluding the infrastructure, real estate and stressed assets sectors. It plans to raise the majority of its capital from domestic investors.
“The underlying philosophy is looking at high-quality businesses and entrepreneurs and there are a bunch of them in the market, especially in the mid-market where we are working,” Sandeep Thapliyal, chief executive officer of NBFC Avendus Finance, told local media.
The fund will deploy different credit strategies including senior secured debt, private equity take-out situations, mezzanine financing and acquisition financing.
In 2015, private equity giant KKR purchased a significant share of Avendus Capital for over $100 million from Eastgate Capital Americorp Ventures, the early investors in Avendus. KKR also invested another $60 million into the company’s NBFC, according to local media reports.
“Having created a platform which is trusted by entrepreneurs across industries, the mantra now for each of Avendus’s businesses is to scale up,” said Ranu Vohra, managing director and chief executive officer at Avendus. “KKR’s capital commitment and support will enable us to provide a broader set of synergistic services and products to these clients, which can catalyse their growth.”
Earlier this month, Avendus provided structured capital to Mahindra Sona Limited, a local supplier of Automotive Components, to finance its purchase of a significant minority stake from various shareholders.
Avendus Capital is a leading financial services firm, which provides customised solutions in the areas of financial advisory and wealth management.