BENGALURU (Reuters) – Indian private equity fund True North said on Monday it has raised more than 10 billion rupees ($120.13 million) as it forays into the fast-growing private credit sector.
The company plans to do deals ranging from 750 million rupees to 2 billion rupees with mid-size companies, aiming for a return of 15%-18%, it said in a statement.
The platform, set up in 2022, aims to close a funding deal by Dec. 31, the firm said
The fund raise comes at a time when a growing number of Indian investors are expanding their private credit business, in a move to fill a void left by banks and non-bank lenders and mirroring a pick-up in activity across Asia.
Private credit funds typically invest in debt or hybrid securities of unrated and lower-rated companies.
In India, Kotak Alternate Assets Managers, Edelweiss Alternatives Asset Advisors, InCred Alternative Investments and Vivriti Asset Management are looking to increase the size of funds or raise new funds, officials at these firms have said.
($1 = 83.2440 Indian rupees)
(Reporting by Rama Venkat in Bengaluru; Editing by Mrigank Dhaniwala)