Avendus Fin Opens Debt Fund
NBFC aims to announce first close of .₹ 500-cr fund by Aug end
New Delhi: Avendus Finance, the non-banking finance company owned and operated by KKRbacked Avendus Capital, has formally launched its .₹ 500-crore debt fund, and is aiming to announce its first close by the end of August.
The .₹ 250-crore Avendus Structured Credit Fund-I, which will also have a green shoe option of .₹ 250 crore, will invest along side the NBFC, and will primarily target opportunities spread across industrials and healthcare sectors, and in the broader consumption theme, according to Sandeep Thapliyal, chief executive, Avendus Finance. “The fund will supplement what is being done by the NBFC. It is largely going to ride on, participate and invest along with the NBFC. It improves our ability to write larger cheques, because you have NBFC capital along with this discretionary pool of capital,” Thapliyal told ET in an exclusive interview. The launch comes at a time when a number of credit funds are being launched in the country. In February, reports stated that private equity firm Baring Private Equity Asia was in the process of raising a new India-dedicated credit fund of .₹ 500 crore with a greenshoe option of .₹ 250 crore. In January, ET was the first to report that KKR had completed raising .₹ 1,100 crore to pre-close the first portion of its dedicated India-credit fund, the se- cond of its kind from the New York-headquartered private equity giant.
Thapliyal, who came on board at Avendus last year, after being poached by the diversified financial services provider from RBL Bank, where he headed the commercial and investment banking unit of the country’s youngest listed private sector lender, said the fund will help Avendus to evaluate potential deals, which otherwise, may have been difficult to target.
“Avendus’ core all these years has been in offering advisory services to high-quality mid-market businesses. As such the launch of NBFC completes the bouquet of products and services to such businesses/companies,” Thapliyal said.
The sector-agnostic, onshore credit fund, which will invest between .₹ 75 crore and .₹ 250 crore, will have a LP profile centred around high net-worth individuals, family offices and institutional investors. According to Thapliyal, it may also consider bets on the country’s broader technology space. “The fact is that technology is a sector that we understand extremely well. Avendus as a firm has more than 50% market share when it comes to offering advisory services to that segment,” he said. The fund will supplement what is being done by the NBFC
SANDEEP THAPLIYAL Chief Executive, Avendus Finance