Alpha Alternatives Raises ₹2,100 cr in First Close of its Maiden Structured Credit Fund
Friday 05 May 2023
Category-II AIF will provide credit solutions to medium and large enterprises.
Alternative assets investor Alpha Alternatives has raised ₹2,100 crore in the first
close of its maiden structured credit fund which will invest in an array of high-yield opportunities, including special situations, collateralized growth funding, and operating equity.
Company executives said the capital commitment came primarily from anchor investors comprising India’s largest family offices and ultra-high net worth individuals (UHNIS), with average commitment of about 250 crore.
The fundraise, according to the executives, has exceeded the earlier estimated target corpus of *1,000 crore, which was later revised to ₹2,500 crore. The category-II alternative investment fund (AIF), which will provide credit solutions to medium and large enterprises, is sector agnostic, with deal sizes ranging between 100 crore and 400 crore. However, the fund may end up investing in larger ticket sizes based on additional co investments from domestic and foreign investors.
Alpha Alternatives was co-founded 10 years ago by financial services industry veteran and senior investment banker Naresh Kothari. It offers clients a wide array of products in the alternatives assets space.
“We launched the fund with a focus on funding high-quality operating businesses rather than investing in high-risk assets, thereby creating a sustainable asset class and a desirable alternative to volatile equity markets and low-yielding fixed income investments” Kothari told ET.
Kaushal Biyani, partner and fund manager, said, “We continue to see significant opportunities in the private credit space in India. We aim to create nuanced win- win solutions for borrowers by providing them restructuring and growth funding, while maintaining a robust risk management framework for delivering superior risk-adjusted returns…”
The India private credit market is growing rapidly, with a shift in focus from stressed asset deals to special situations, bridge to IPO, and securitisation deals.
Disclaimer: An investment with Alpha Alternatives (including its subsidiaries) is suitable only for sophisticated investors and requires the financial ability and willingness to accept the high risks and lack of liquidity inherent in any such investment. This document is not intended to be comprehensive or to provide specific investment advice or services. The document is not in any form a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business. Before deciding to invest, prospective investors should read the definitive offering and subscription documents and pay particular attention to the risk factors contained therein. Persons who are not relevant persons must not act on or rely on this document or any of its contents. Any investment or investment activity to which this document relates is available only to relevant people and will be engaged only with relevant people. Any decision or action taken by you based on the information contained herein is your responsibility, and Alpha Alternatives is not liable in any manner for the consequences of such a decision or action. In deciding whether to make an investment with Alpha Alternatives, you must rely on your own evaluation of the terms of the proposed investment and the merits and risks involved, and, if applicable, upon receipt and careful review of any confidential memorandum, prospectus, or similar documents, and you should consult your legal, tax, investment, or other advisor. The contents of this document do not constitute and should not be construed as legal, tax, or investment advice. Although Alpha Alternatives has used all reasonable efforts to ensure that the information provided in this document is correct, Alpha Alternatives and its members, partners, stockholders, managers, directors, officers, employees, advisers, representatives, and agents make no representation and give no warranty that such information is accurate, complete or current, and you should not rely on the information provided in this document for any purpose.
