Indian private equity firm True North has raised Rs 1,000 crore (about $120 million) for its maiden private credit fund, joining a growing list of alternative investment firms foraying into the space this year.
The PE firm expects to mark the final close of the Performing Credit Regular Income Fund by the end of December, it said in a statement on Monday.
True North’s announcement comes more than two years after it kicked off work on its debut private credit vehicle in 2021, soon after hiring former KKR executive Kapil Singhal in early 2021 to spearhead the initiative. Apart from Singhal, the fund's team includes managing director Rubin Chheda and chief risk officer Sushim Desai.
Singhal, managing partner of private credit at True North, said many domestic institutions, family offices, high-net-worth individuals, and wealth partners supported the fund. He didn’t name any limited partner.
The fund backs mid-market companies. It has signed eight deals so far, made one full exit and clocked one partial exit.
“The private credit sector in India is fast evolving into a robust segment, driven by the favourable risk-reward equation and the presence of a good regulatory framework,” the PE firm said.
True North said the ticket size is in the Rs 75-200 crore range, taking into account co-investment bets. The fund aims to achieve an internal rate of return (IRR), or annualised return, of 15-18%.
The fund aims to collaborate closely with founders of cash-flow-generating entities and offer financing options for shorter tenures.
Apart from True North, other Indian firms that have private credit include Kotak, Edelweiss and KKR-backed InCred. Last week, VCCircle reported that Nippon Asset Management’s AIF subsidiary also launched its maiden private credit fund with a target size of Rs 1,000 crore and a greenshoe option of an equal additional amount.