Avendus Secures Over Rs 1,000 Crore in First Close of Structured Credit Fund III
Avendus, a leading financial services firm, has successfully completed the first close of its Structured Credit Fund III (ASCF III), raising over Rs 1,000 crore in investor commitments since its launch in January 2025. The fund has seen strong interest from both existing and new investors, including high-net-worth individuals and family offices in India.
Targeting Growth-stage Companies
ASCF III, registered as a Category-II Alternative Investment Fund with SEBI, is focused on mature and growth-stage companies with robust business models. The fund aims to provide tailored capital solutions to enhance value for these businesses. Avendus, with its deep industry expertise, is sector-agnostic but will leverage its relationships in sectors such as pharmaceuticals, healthcare, manufacturing, technology, and consumer services.
Rising Preference for Flexible Capital
Nilesh Dhedhi, managing director of Avendus Finance, highlighted the growing demand for flexible capital in the market. With traditional lending becoming more rigid, there is a shift towards flexible capital solutions that can support the growth ambitions of Indian companies and entrepreneurs. Avendus, having executed transactions worth over Rs 10,000 crore in the past eight years, is well-positioned to meet this demand.
Aiming for Rs 2,000 Crore Fundraise
With a target of raising a total of Rs 2,000 crore for ASCF III and a green shoe option for an additional Rs 2,000 crore, Avendus aims to build a diverse portfolio of 12 to 18 investments. The fund targets gross internal rates of return between 16% and 18%, with ticket sizes ranging from Rs 200 crore to Rs 500 crore. The firm’s earlier funds, ASCF I and ASCF II, have delivered strong returns, showcasing Avendus’ expertise in the private credit market.
In conclusion, Avendus’ successful first close of ASCF III reflects investor confidence in the firm’s strategy and team. With a focus on providing customised capital solutions to growth-stage companies, Avendus is well-positioned to drive value creation and deliver attractive outcomes for its investors.
