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Vivriti Asset Management (VAM), a subsidiary of Chennai-based Vivriti Capital Private Limited, is planning to add more than ten debt funds and aims to take its asset under management (AUM) to over ₹8,000 crore by end of FY23, according to a senior company official.
“As on date we have four operational funds. We are launching two funds today taking the total number to six. We are planning to have 11 funds by the end of this fiscal and possibly add seven to eight funds in the next financial year,” said Vineet Sukumar, CEO, Vivriti Asset Management.
He was addressing a virtual press conference on Tuesday to announce the launch of two alternative investment funds (AIFs) – Alpha Debt Fund and Alpha Debt - Enhanced Fund focused on ‘Performing Credit’. Both are SEBI-registered Category II close-ended debt funds with a tenor of 3.5 years.
Later addressing a Q&A session, Sukumar said there is a significant amount of interest among large domestic, institutional and global investors in the ‘performing credit space’ and VAM’s offering of a combination of technology and in-person diligence and structuring has attracted financial institutions, family offices, HNIs and foundations to the platform.
“Our own assessment is that we will have anywhere between 15-20 funds by March 2023. We have cumulatively raised over ₹1,550 crore so far and we expect to take this to around ₹4,000 crore by end of March 2022 and double it to ₹8,000 crore by March 2023,” Sukumar added.
VAM manages mid-to-long term AIFs which count marquee global and domestic investors. The company is part of Vivriti Group, which runs CredAvenue - India’s largest online enterprise debt marketplace.
New Funds
The Alpha Debt Fund, with a target AUM of ₹400 crores, will invest in debt issued by operating companies with a track record of scale, profitability and access to capital, and will target an annualised yield of 7.5% post tax, fees and expenses, to investors. The fund is sector agnostic and aims for a median portfolio rating of A category.
The Alpha Debt - Enhanced Fund, with a target size of ₹250 crores will invest in debt issued by high-growth enterprises in well understood sectors, with demonstrated access to capital. The fund is sector agnostic and aims for a median portfolio rating of BBB. The fund targets an annualised yield of 9.4 per cent and 13.5 per cent to investors in senior and subordinated units respectively, post expenses and taxes.
“The performing credit space in India continues to be a massive untapped opportunity for predictable holding period and inflation-beating returns. Ability to source investment opportunities and track performance of investments on an ongoing basis in the absence of widely available data, while keeping portfolios granular, have been entry barriers for asset managers in this space,” said Soumendra Ghosh, Chief Investment Officer, Vivriti Asset Management.
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