Homegrown private equity fund True North on Monday announced a foray into private credit, joining a slew of other entities which have started dabbling in this space.
The firm said it had set up a fund in 2022, and has already raised over Rs 1,000 crore. It intends to close the fund by the end of the year, as per a statement.
The business christened "True North Private Credit" will build on the capabilities by the firm over the last two decades.
A favourable risk-reward equation and a good regulatory framework make private credit a robust business, the statement said.
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The business will offer agile capital solutions to well-governed and profitable enterprises and deliver superior, risk-adjusted returns to its investors, it said.
The fund, which bridges the supply-demand gaps for middle-market companies, will invest Rs 75 crore by itself into companies and Rs 200 crore along with its co-investment pools, as per the statement.
It is targeting an internal rate of returns between 15-18 per cent.
Its managing partner Kapil Singhal said domestic institutions, family offices, high-net-worth individuals and wealth partners have supported the fund.
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