The demand for capital among Indian corporate remains high and more so in the current dislocated markets. The Private Credit asset class is being preferred by investors as global fiscal and monetary stimulus measures have led to compression in yields in traditional fixed income product space and asset managers globally, are chasing assets with yield pickups. Centrum’s Private Credit vertical is an independently managed platform and the Fund I is investing in the performing credits space.
The Fund I (Centrum Credit Opportunities Fund – Category II AIF Fund) entails the following:
- Investment Strategy: The Fund is investing in companies which are performing and doesn’t invest in stressed situations. The Fund follows sectoral investment pattern with preference towards consumption themes, core economy, manufacturing & industrial companies. Sectors such as real estate, infrastructure and highly regulated businesses are generally avoided in the current Fund
- The Fund team under Fund I has so far:
- Executed 6 transactions aggregating to an gross AUM of c.INR 650 crores. This includes co-invested capital managed by the Fund team
- All of them have shown an improvement in credit quality since investment and are performing well;
- 2 transactions got prepaid;
- Raised ~INR 200 crore commitments in the Credit Fund;
- Have drawn down 55% of the committed amount;
- Distributed dividends at the rate of 7% each for Q3 FY 20, Q4 FY 20 and in Q2 FY 21 from the Credit Fund;
- Received principal repayments of ~INR 130 crores before schedule and returned the same to investors