In order to diversify its business, UTI AMC has announced the launch private debt fund, which comes under Category II of alternative investment funds (AIFs).
In fact, the AMC has appointed Rohit Gulati as Managing Partner, Shaurya Arora as Partner and Sumit Khandelwal as Principal with effect from March 1, 2017 to establish new business vertical under UTI Capital.
The team of trio would exploit several credit arbitrage opportunities that currently exist in the Indian market.
In a press release, Leo Puri, Managing Director, UTI AMC stated "Private debt is at the cusp of significant growth in India and diversification into that segment is an attractive opportunity for UTI AMC. I am confident that alternate credit investments will be a material business for UTI Capital and I am delighted to bring on board Rohit and his team to help build out this new business vertical for us."
Rohit Gulati added, "We look forward to building a substantial private debt business. The objective of the proposed fund will be to deliver superior risk adjusted returns for their investors by identifying opportunities where customized structured credit solutions can be offered to corporate clients.”
Of 40 odd AMCs, only a handful of them have launched AIFs. Currently, Indiabulls, Reliance, DSP Black Rock, Edelweiss, IIFL, IDFC, ICICI Prudential and HDFC are among the players who have ventured into the AIF space. A majority of them have launched category II AIFs, which are private equity funds, debt funds and fund of funds.
