Vivriti Asset Management, a fixed-income Alternative Investment Fund (AIF) platform, that gives debt financing to home mid-market firms has set a goal to develop its Assets Under Management (AUM) to $5 billion by FY26, its founder stated.
‘We are very optimistic about the growth potential the mid-market segment offers and aiming to build an AUM of $5 billion by FY26,” said Vineet Sukumar, founder & CEO, Vivriti Asset Management.
He said not many players were lending to this segment. As per the company, mid-market comprises companies with a revenue of more than ₹50 crore to ₹5,000 crore.
The demand is so high that the debt asset manager had come out with at least five alternative asset funds in last one year.
“India’s underpenetrated debt markets supply traders extremely impactful and but commercially rewarding funding alternatives and a fund home like Vivriti channelises the much-needed finance effectively,” he stated.
The fund home invests in debt of small- and mid-sized monetary establishments to onward lend to microenterprises and different well-funded firms.
“We seek to bring the performing credit market to investors in India and abroad – a market with tremendous potential, and a significant gap between perceived and real risk,” Mr. Sukumar stated.
Vivriti Asset Management’s guardian firm Vivriti Capital, a mid-market NBFC, lends to small and medium-sized enterprise. It not too long ago closed $85 million Series C funding spherical.
The firm had raised $55 million from present traders Lightrock and Creation Investments and roughly $30 million from TVS Shriram Growth Fund earlier this month.
Armed with this spherical of funding, Vivriti Capital plans to develop its portfolio in its goal phase. Currently each the NBFC and the AIF collectively handle property of little greater than ₹5,200 crore . “In out history, we just had just one write off. Our strict due diligence and focussed approach has kept the gross non-performing assets at 0.25% of our portfolio,” Mr. Sukumar stated.
“Fundamentally, both companies lend to operating companies that are running well and not defaulting and we call this space performing credit space. The AIF develops funds that it lends, and the NBFC lends directly…” he stated.
, “…if I look at it in terms of credit ratings, you will have unrated companies, BBB rated companies and A rated companies (not AA or AAA). Big lenders do not lend to this segment. We are seeking to bring in very large pools of capital from investors who accept our risk appetite and underwriting and lend to this segment,” he added.
Besides constructing its corpus for lending, Vivriti Capital is investing in know-how to choose early misery alerts of its portfolio firms. It can also be creating know-how to map the digital footprint of firms it will lend sooner or later.