Arka Investment Advisory Services Private Limited (AIASPL) has announced the first closing of Arka Credit Fund I, a scheme of Arka Credit Fund, its debut credit fund. It is a Category-II Alternative Investment Fund (AIF) with a target corpus of INR 250 crore and a green shoe option of Rs. 50 crore. It has a 4.5-year term, and the sponsor and/or its subsidiary(ies) have approved an investment of Rs. 55 crore in the Fund.
The Arka Credit Fund I intends to provide structured solutions for mid-market corporates and conglomerates to support their business needs, and is backed by a strong management team with over 100 years of expertise managing assets in the performing credit and structured credit space.
Gauri Kirloskar, Managing Director, Kirloskar Oil Engines Limited, said, “The Asset Management business rollout is a well-thought-out diversification strategy of the group in alignment with our NBFC business, Arka Fincap Ltd.”
Vimal Bhandari, Executive Vice Chairman & CEO, Arka Fincap Limited, said, “The fund shall compliment the NBFC in providing a more comprehensive solution to our clients.”
Sonit Singh, Director & Head, Arka Investment Advisory Services Private Limited, said, “With a strong track record of investing in investment grade credit space along with the inherent demand from the market post pandemic, Arka Group now launches this credit fund to fill the gap which persists in the market. We are planning to make 8-10 investments at a ticket size between Rs. 30-50 Cr in performing credit space at an IRR of 14% – 16%. Our maiden offering has a strong backing from our sponsors and so far Arka Credit Fund I has received an encouraging response from marquee investors.”
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