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Aditya Birla Sun Life AMC has launched its performing credit fund, ‘ABSL Structured Opportunities Fund Series 2’.
This fund is a SEBI-registered Category II Alternative Investment Fund (AIF) specifically designed to invest in debt securities of Indian companies. Performing credit funds are similar to credit risk funds as they invest in low rated opportunities.
The fund will primarily invest in key sectors such as steel, chemicals, power, healthcare, roads, auto and auto ancillaries, ports and engineering and capital goods. To manage risk and ensure diversification, the fund's exposure to any single borrower will not go beyond 15%. Similarly, exposure to any single sector will not go beyond 30%.
The investment strategy of the fund allows sector-agnostic investments and exploring opportunities in the structured credit space. This includes providing growth capital, strategic capital and opportunistic capital to various businesses.
The fund aims to raise to Rs.1250 crore, with the option to raise an additional Rs.1250 crore through a green shoe option. The sponsor will put 10% in this strategy.
Amit Kansal, Head Fixed Income, Alternate Investments will manage this fund. Other fund managers overseeing this fund includes Ashay Dhuri, Analyst, Alternate Investments – Fixed Income, Krithika Iyer, Principal, Alternate Investments – Fixed Income and Niladri Dey, Principal, Alternate Investments – Fixed Income.
The strategy aims to generate CAGR of 14-16%. The tenure of the fund will be 5 years and 6 months from the first closing.