Modulus Alternatives' India Credit Opportunities Fund II Shines with CARE AIF 1 Grading
February 4, 2025, 4:28 am
In the bustling financial landscape of India, Modulus Alternatives has made a significant mark with its India Credit Opportunities Fund II (ICOF II). Recently awarded the prestigious CARE AIF 1 grading by CareEdge Analytics & Advisory, this fund stands tall among its peers. This accolade is not just a badge of honor; it signifies excellence in asset selection and management capabilities.
The CARE AIF 1 grading is the highest recognition for Alternative Investment Funds (AIFs) in India. It reflects a robust evaluation of the fund's operational prowess. The grading indicates that ICOF II is expected to excel in key areas such as portfolio monitoring, risk management, and the financial strength of its sponsors. This is akin to a gold star in a crowded classroom, highlighting the fund's commitment to delivering value to its investors.
ICOF II is the second private credit fund launched by Modulus Alternatives. It is currently in its fundraising phase, targeting a total size of INR 750 crore, with an additional green shoe option of INR 500 crore. The fund is strategically focused on sectors poised for growth, including healthcare, pharmaceuticals, industrials, and clean energy. These sectors are like fertile soil, ready to nurture investments that promise fruitful returns.
With a residual tenor of approximately 4.5 years, ending in August 2029, ICOF II has already deployed over INR 800 crore across six investments. This proactive approach demonstrates the fund's agility in navigating the investment landscape. In January 2025, Modulus Alternatives successfully exited its first private credit fund, Centrum Credit Opportunities Fund (Fund I), which invested INR 1,790 crore across 15 investments. Fund I consistently delivered mid-teen returns, showcasing stable credit quality and regular income distributions, with zero delinquencies. The Gross Internal Rate of Return (IRR) achieved was an impressive 17.01%. Such performance is like a lighthouse guiding investors through the fog of uncertainty.
Modulus Alternatives Investment Managers Limited, the brain behind ICOF II, has been operational since 2018. The firm has deployed over INR 2,500 crore across 21 investments, solidifying its reputation in the private credit space. The leadership team includes notable figures such as Alok Agarwal, former CFO of Reliance Industries Limited, and Vinod Rai, former Finance Secretary and Comptroller and Auditor General of India. Their expertise adds a layer of credibility, akin to a seasoned captain steering a ship through turbulent waters.
The CARE AIF 1 grading is not merely a marketing tool; it serves as a compass for institutional and individual investors. It provides assurance that the fund's management is equipped to handle the complexities of the investment landscape. Investors are increasingly seeking risk-adjusted returns and steady income generation, and ICOF II positions itself as a viable option in this regard.
The grading process itself is rigorous. CareEdge Advisory evaluates various parameters, including the sponsor's financial strength, portfolio monitoring, and risk management capabilities. This thorough assessment ensures that only the most capable funds receive the coveted CARE AIF 1 grading. It’s a meticulous process, akin to a jeweler examining a diamond for its clarity and brilliance.
As ICOF II continues its fundraising journey, it invites investors to consider the potential of private credit opportunities in India. The fund's focus on sectors with tailwinds positions it favorably in a rapidly evolving market. With the Indian economy showing resilience and growth, the timing could not be better for investors looking to diversify their portfolios.
However, potential investors should approach with caution. The grading does not guarantee performance or mitigate risks associated with investments. It serves as a guide, not a guarantee. The financial landscape is ever-changing, and investors must remain vigilant.
In conclusion, Modulus Alternatives' India Credit Opportunities Fund II has emerged as a beacon of excellence in the private credit sector. The CARE AIF 1 grading underscores its commitment to quality and performance. As the fund navigates its fundraising phase, it stands ready to attract investors seeking robust returns in a dynamic market. With a solid foundation and a clear vision, ICOF II is poised to make waves in the investment community. The journey ahead looks promising, and the horizon is bright for those willing to embark on this venture.
The CARE AIF 1 grading is the highest recognition for Alternative Investment Funds (AIFs) in India. It reflects a robust evaluation of the fund's operational prowess. The grading indicates that ICOF II is expected to excel in key areas such as portfolio monitoring, risk management, and the financial strength of its sponsors. This is akin to a gold star in a crowded classroom, highlighting the fund's commitment to delivering value to its investors.
ICOF II is the second private credit fund launched by Modulus Alternatives. It is currently in its fundraising phase, targeting a total size of INR 750 crore, with an additional green shoe option of INR 500 crore. The fund is strategically focused on sectors poised for growth, including healthcare, pharmaceuticals, industrials, and clean energy. These sectors are like fertile soil, ready to nurture investments that promise fruitful returns.
With a residual tenor of approximately 4.5 years, ending in August 2029, ICOF II has already deployed over INR 800 crore across six investments. This proactive approach demonstrates the fund's agility in navigating the investment landscape. In January 2025, Modulus Alternatives successfully exited its first private credit fund, Centrum Credit Opportunities Fund (Fund I), which invested INR 1,790 crore across 15 investments. Fund I consistently delivered mid-teen returns, showcasing stable credit quality and regular income distributions, with zero delinquencies. The Gross Internal Rate of Return (IRR) achieved was an impressive 17.01%. Such performance is like a lighthouse guiding investors through the fog of uncertainty.
Modulus Alternatives Investment Managers Limited, the brain behind ICOF II, has been operational since 2018. The firm has deployed over INR 2,500 crore across 21 investments, solidifying its reputation in the private credit space. The leadership team includes notable figures such as Alok Agarwal, former CFO of Reliance Industries Limited, and Vinod Rai, former Finance Secretary and Comptroller and Auditor General of India. Their expertise adds a layer of credibility, akin to a seasoned captain steering a ship through turbulent waters.
The CARE AIF 1 grading is not merely a marketing tool; it serves as a compass for institutional and individual investors. It provides assurance that the fund's management is equipped to handle the complexities of the investment landscape. Investors are increasingly seeking risk-adjusted returns and steady income generation, and ICOF II positions itself as a viable option in this regard.
The grading process itself is rigorous. CareEdge Advisory evaluates various parameters, including the sponsor's financial strength, portfolio monitoring, and risk management capabilities. This thorough assessment ensures that only the most capable funds receive the coveted CARE AIF 1 grading. It’s a meticulous process, akin to a jeweler examining a diamond for its clarity and brilliance.
As ICOF II continues its fundraising journey, it invites investors to consider the potential of private credit opportunities in India. The fund's focus on sectors with tailwinds positions it favorably in a rapidly evolving market. With the Indian economy showing resilience and growth, the timing could not be better for investors looking to diversify their portfolios.
However, potential investors should approach with caution. The grading does not guarantee performance or mitigate risks associated with investments. It serves as a guide, not a guarantee. The financial landscape is ever-changing, and investors must remain vigilant.
In conclusion, Modulus Alternatives' India Credit Opportunities Fund II has emerged as a beacon of excellence in the private credit sector. The CARE AIF 1 grading underscores its commitment to quality and performance. As the fund navigates its fundraising phase, it stands ready to attract investors seeking robust returns in a dynamic market. With a solid foundation and a clear vision, ICOF II is poised to make waves in the investment community. The journey ahead looks promising, and the horizon is bright for those willing to embark on this venture.