Avendus Secures INR 1,000 Cr for Structured Credit Fund III: A New Chapter in Private Credit
May 10, 2025, 3:30 pm
Location: India, Maharashtra, Mumbai
Employees: 201-500
Founded date: 1999
Total raised: $424.92M
Avendus has made waves in the financial sector with the first close of its Structured Credit Fund III (ASCF III), securing over INR 1,000 crore in investor commitments since its launch in January 2025. This milestone marks a significant step in the evolution of private credit in India, where demand for flexible capital solutions is surging.
The ASCF III is registered with SEBI as a Category-II Alternative Investment Fund (AIF). The fund aims to raise a total of INR 2,000 crore, with an additional green shoe option of INR 2,000 crore. This ambitious target reflects the growing appetite for private credit in a landscape where traditional lending is often too rigid.
The fund plans to build a diversified portfolio comprising 12 to 18 investments. Each investment will range between INR 200 crore and INR 500 crore. The targeted gross internal rates of return (IRRs) are between 16% and 18%. These figures are not just numbers; they represent the potential for significant returns in a market that is increasingly leaning towards alternative financing solutions.
Avendus has already demonstrated early momentum, having drawn 15% of the capital and completed its first investment. This swift action speaks volumes about the fund's operational efficiency and the confidence investors have in Avendus' strategy. The firm has a track record of success in its previous credit funds, with ASCF I achieving a gross IRR of 18% and ASCF II currently tracking an expected gross IRR of 17%. Such performance sets a high bar for ASCF III.
The focus of ASCF III is primarily on secured debt of operating and holding companies. However, the fund will also consider selective exposure to hybrid instruments. This approach allows for a balanced risk profile while tapping into high-yield opportunities. The fund is sector-agnostic, but it will leverage Avendus' deep corporate relationships and domain expertise in key industries such as pharmaceuticals, healthcare, manufacturing, consumer goods, chemicals, technology, and B2B services.
The private credit landscape in India is evolving rapidly. Companies are increasingly seeking bespoke capital solutions that traditional lenders often cannot provide. As the financial ecosystem becomes more complex, the need for flexible capital is paramount. Mid-to-large companies and entrepreneurs are looking for partners who can understand their unique challenges and offer tailored solutions. Avendus is positioning itself as that partner.
The early investors in ASCF III include a mix of returning participants and new backers, notably high-net-worth individuals and family offices. This diverse investor base underscores the trust and credibility Avendus has built over the years. The firm has emerged as a trusted name in the high-yield performing credit segment, a testament to its strategic vision and execution capabilities.
Founded in 1999, Avendus operates across various financial services, including investment banking, institutional equities, wealth management, credit solutions, and asset management. With a presence in 10 cities globally, the firm has established itself as a key player in the financial landscape. Its comprehensive approach allows it to offer differentiated investment opportunities that cater to a wide range of investor needs.
The success of ASCF III is not just about numbers; it reflects a broader trend in the financial markets. As traditional lending becomes more constrained, alternative financing options are gaining traction. Investors are increasingly looking for avenues that offer higher returns and greater flexibility. Avendus is tapping into this demand, positioning itself at the forefront of the private credit revolution in India.
The firm’s previous funds have set a strong precedent. ASCF I was fully returned by 2022, showcasing Avendus' ability to deliver on its promises. ASCF II, launched in January 2022, is currently tracking an expected gross IRR of 17%. These achievements are not mere coincidences; they are the result of a well-thought-out strategy and a deep understanding of market dynamics.
In a world where financial landscapes are constantly shifting, Avendus stands out as a beacon of innovation and reliability. The firm’s commitment to high-yield private credit is evident in its strategic focus and execution. ASCF III is not just another fund; it is a testament to the evolving needs of the market and the firm’s ability to adapt and thrive.
As the private credit space continues to grow, Avendus is well-positioned to capitalize on emerging opportunities. The firm’s deep sector expertise and extensive corporate relationships will be instrumental in navigating the complexities of the market. Investors can expect not just returns, but a partnership that understands their ambitions and challenges.
In conclusion, Avendus’ first close of INR 1,000 crore for ASCF III is a significant milestone in the private credit landscape. It reflects a growing trend towards alternative financing solutions in India. With a strong track record and a clear strategy, Avendus is poised to lead the charge in this evolving market. The future looks bright for both the firm and its investors.
The ASCF III is registered with SEBI as a Category-II Alternative Investment Fund (AIF). The fund aims to raise a total of INR 2,000 crore, with an additional green shoe option of INR 2,000 crore. This ambitious target reflects the growing appetite for private credit in a landscape where traditional lending is often too rigid.
The fund plans to build a diversified portfolio comprising 12 to 18 investments. Each investment will range between INR 200 crore and INR 500 crore. The targeted gross internal rates of return (IRRs) are between 16% and 18%. These figures are not just numbers; they represent the potential for significant returns in a market that is increasingly leaning towards alternative financing solutions.
Avendus has already demonstrated early momentum, having drawn 15% of the capital and completed its first investment. This swift action speaks volumes about the fund's operational efficiency and the confidence investors have in Avendus' strategy. The firm has a track record of success in its previous credit funds, with ASCF I achieving a gross IRR of 18% and ASCF II currently tracking an expected gross IRR of 17%. Such performance sets a high bar for ASCF III.
The focus of ASCF III is primarily on secured debt of operating and holding companies. However, the fund will also consider selective exposure to hybrid instruments. This approach allows for a balanced risk profile while tapping into high-yield opportunities. The fund is sector-agnostic, but it will leverage Avendus' deep corporate relationships and domain expertise in key industries such as pharmaceuticals, healthcare, manufacturing, consumer goods, chemicals, technology, and B2B services.
The private credit landscape in India is evolving rapidly. Companies are increasingly seeking bespoke capital solutions that traditional lenders often cannot provide. As the financial ecosystem becomes more complex, the need for flexible capital is paramount. Mid-to-large companies and entrepreneurs are looking for partners who can understand their unique challenges and offer tailored solutions. Avendus is positioning itself as that partner.
The early investors in ASCF III include a mix of returning participants and new backers, notably high-net-worth individuals and family offices. This diverse investor base underscores the trust and credibility Avendus has built over the years. The firm has emerged as a trusted name in the high-yield performing credit segment, a testament to its strategic vision and execution capabilities.
Founded in 1999, Avendus operates across various financial services, including investment banking, institutional equities, wealth management, credit solutions, and asset management. With a presence in 10 cities globally, the firm has established itself as a key player in the financial landscape. Its comprehensive approach allows it to offer differentiated investment opportunities that cater to a wide range of investor needs.
The success of ASCF III is not just about numbers; it reflects a broader trend in the financial markets. As traditional lending becomes more constrained, alternative financing options are gaining traction. Investors are increasingly looking for avenues that offer higher returns and greater flexibility. Avendus is tapping into this demand, positioning itself at the forefront of the private credit revolution in India.
The firm’s previous funds have set a strong precedent. ASCF I was fully returned by 2022, showcasing Avendus' ability to deliver on its promises. ASCF II, launched in January 2022, is currently tracking an expected gross IRR of 17%. These achievements are not mere coincidences; they are the result of a well-thought-out strategy and a deep understanding of market dynamics.
In a world where financial landscapes are constantly shifting, Avendus stands out as a beacon of innovation and reliability. The firm’s commitment to high-yield private credit is evident in its strategic focus and execution. ASCF III is not just another fund; it is a testament to the evolving needs of the market and the firm’s ability to adapt and thrive.
As the private credit space continues to grow, Avendus is well-positioned to capitalize on emerging opportunities. The firm’s deep sector expertise and extensive corporate relationships will be instrumental in navigating the complexities of the market. Investors can expect not just returns, but a partnership that understands their ambitions and challenges.
In conclusion, Avendus’ first close of INR 1,000 crore for ASCF III is a significant milestone in the private credit landscape. It reflects a growing trend towards alternative financing solutions in India. With a strong track record and a clear strategy, Avendus is poised to lead the charge in this evolving market. The future looks bright for both the firm and its investors.