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Northern Arc Investment Managers has launched its performing credit AIF fund (Category II) – Finserv Fund.
The category II AIF aims to raise Rs. 1500 crore including a green shoe option of Rs.500 crore.
The fund will invest in six themes - MSME, affordable housing, vehicle finance, agriculture finance, microfinance and consumer finance.
In a press release, Ashish Mehrotra, Managing Director & CEO of Northern Arc said, " We have invested over Rs.10,050 crore largely in financial institutions since inception, with zero defaults to investors to date. Our extensive network experience of 328 originator partners,50 retail lending partners, 1000+ investor partners and deep sectoral expertise allows us to manage a diverse portfolio effectively, while our robust risk management philosophy promotes the protection of our investor interests.”
Bhavdeep Bhatt, Chief Executive Officer of Northern Arc Investments, added, "The fund is the 11th AIF launch from our fund management platform apart from the 2 PMS funds we manage. We have successfully closed and exited four funds at higher-than-targeted returns to our investors. This fund will invest in a well-diversified portfolio across 45-55 entities within our key sectors. This fund targets gross returns of 14.00-14.50% XIRR over its four-year tenure, with a deployment period of approximately six months from the final close.”
Northern Arc manages an AUM of Rs.15,000 crore through its balance sheet and active AIF funds as of June 30, 2024.
Here are other key highlights of the fund:
- Fund term- 4 years from the first close
- Deployment period- 6 months from the final close
- Target portfolio yield-14.00 - 14.50% XIRR (gross)