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Investec Capital reaches first close on private credit fund

The Emerging India Credit Opportunities Fund II reached first close with commitments in excess of Rp6.5bn.

Investec Capital Services (India) has reached the first close on its second rupee-denominated private credit fund, Emerging India Credit Opportunities Fund II (EIOCF II), with aggregate commitments in excess of Rp6.5bn ($78m).

The fund will make private credit investments in Indian mid-market corporate groups for end uses typically not suitable for bank finance. The fund has a particular focus on issuers with strong corporate governance and a robust financial performance, Investec Capital said in a statement.

The fund will provide private credit solutions for various end uses including acquisition financing, refinancing requirements, financing for stake consolidation, growth capex requirements, asset financing, dividend recapitalisation and bridge financing.

The fund is a successor to Investec Capital’s first private credit fund, the Emerging India Credit Opportunities Fund I (EICOF I). The fund achieved an AUM of over Rp16bn.

“The exceptionally strong investor response to EIOCF II in an unprecedented timeline for the first close demonstrates the investor recognition and vote of confidence for our solid performance track record of underwriting mid-market credit in India for over 10 years including the performance of our maiden Indian private credit fund EICOF I. We remain very positive on the structural opportunity for private credit in India in the coming years,” said Piyush Gupta, head of credit markets at Investec Capital.

Investec Capital is a 80:20 joint venture between Investec Bank and SBI Capital Markets.

Part of the Mark Allen Group.