Northern Arc Investments achieves first close of impact fund

Northern Arc Investments has achieved first close of its latest fund, Northern Arc India Impact Fund. This is the eighth debt fund from the Northern Arc platform and the first to get on board international investors.

The fund, which targets a corpus of $100 million with a greenshoe option of $50 million, has got commitments of $23 million from investors, including from PG Impact Investments, a leading global impact investment firm backed by private markets investment manager Partners Group; Anthos Fund & Asset Management from the Netherlands; and, Calvert Impact Capital, a US-based institutional impact investor.

Over its five-year tenure, the fund will invest in different debt instruments, including senior and subordinated debentures and commercial papers. Over the next 12-18 months the fund targets to make 15-20 investments with average deal sizes of $3-5 million across microfinance, small business finance, vehicle and agri-business finance.