Religare Credit Advisors raises $78M in maiden debt fund

Religare Credit Advisors LLP (RCAL), a part of diversified financial services major Religare Enterprises, has raised Rs 512 crore ($78 million) to hit final close for its domestic fund vehicle of the maiden debt fund Religare Credit Opportunities Fund, the company said on Monday.

Christened as Religare Credit Opportunities Fund, it was launched in March last year with a target corpus of Rs 1,000 crore including a green-shoe option of Rs 250 crore.

The firm has raised Rs 512 crore under Scheme I of of the fund and aims to raise rest of the corpus from the offshore market.

Kanchan Jain, chief executive officer and principal managing partner, said, “What makes this fund special is that it is part of a much larger picture globally where more and more promoters are relying on alternative pools of capital for various requirements.”

“We have announced final close as far as domestic market is concerned and the rest of the funds will be raised from offshore investors,” she added.

The mandate of the fund is to invest in secured corporate debt instruments. It has already deployed more than 80 per cent of the committed corpus in debt investments across sectors including agri-business, textile, food & beverage and real estate.

Within real estate, the fund has lent to advance stage and last mile residential projects in metro cities with the debt being serviced out of ring-fenced project cash flows and established receivables.

As of now, the fund has 12 investments and has made five distributions. With the first fund nearing completion and almost fully deployed, the team is introducing new investment opportunities through a PMS platform and additional funds, it said.

At the launch of the fund, Kanchan had said that the fund will have 15-20 companies and a substantial portion of the fund, as much as 75 per cent, will be allocated to real estate companies. As first reported by VCCircle, one of its realty investments had gone to a project by north-based developer Orris Infrastructure.

RCAL is an affiliate of Religare Global Asset Management (RGAM), a multi-boutique asset management platform focused on alternative investments.

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