Vivriti Asset Management will launch a new private credit fund aimed at investing in small and medium-sized enterprises in India, according to a report by Bloomberg.
In a joint interview with Bloomberg and The Hindu Business Line, Vineet Sukumar, founder and managing director of Vivriti, said that the Chennai-based private credit firm plans to raise up to INR20bn ($240m) for its Diversified Bond Fund Series II, its third such vehicle. The fund will have a five-year tenor and aims to deliver a pretax annual rupee return of 15% to 16%.
“We will primarily focus our financing on profitable operating companies where cash flows can be predicted,” Sukumar stated. The fund will emphasise direct lending to businesses rather than relying on events like IPOs or refinancing for repayments, he added.
According to Soumendra Ghosh, Vivriti’s CIO, the new fund will target consumer goods, healthcare, infrastructure and manufacturing. The fund plans to make 30 to 35 investments, with a cap of INR1bn per issuer to mitigate credit risks.
Vivriti, established over five years ago, saw its first private credit fund launched in 2019 mature with a yield of over 15.5% for investors.
