New Delhi, May 15 -- ASK Alternates, a part of the Blackstone-backed ASK Asset & Wealth Management Group, has unveiled its second private credit fund.

The fund is targeting a corpus of Rs 2,500 crore (about $260 million), including a greenshoe option of Rs 1,500 crore, ASK Alts said in a press note.

This comes after ASK Alts marked the final close of its maiden performing credit fund in December at $63 million (around 569 crore).

The maiden fund delivered a gross internal rate of return of 15% and "exceeded" multiple key operating benchmarks, including higher coupon payouts and faster deployment timelines, ASK Alts said.

The firm said that, like the maiden vehicle, the second fund will target a gross IRR of 14-16% by investing in high-quality, market-leading businesses backed by reputed Indian promoters, global private equity, sovereign wealth firms, and global strategics. The strategy focuses on senior secured lending with tangible collateral, while avoiding exposure to real estate, distressed debt, venture debt, and struggling or asset-light businesses, it said.

Specifically, the new fund will invest across 12-15 transactions, with lower single-asset exposure of 6-7% and sector concentration below 10%. ASK Group may commit up to Rs 100 crore in the fund.

The fund will feature a reinvestment period of three-and-a-half years to enhance capital efficiency and generate higher distributed to paid-in capital, along with the ability to onboard offshore investors through a GIFT City-based feeder fund structure of ASK Group.

"We lend to businesses with proven cash flows, strong sponsors, and tangible collateral cover. We focus on sectors that are considered high priority by the Government, which in turn ensures favourable regulatory tailwinds as well as interest from offshore capital pools," Shantanu Sahai, head of private credit at ASK Alternates, said in the note.

The ASK Asset & Wealth Management Group largely caters to high-net-worth individuals and ultra-high-net-worth individuals. ASK's diversified businesses comprise a wide range of portfolio management services and alternative investment funds. The firm also manages real estate funds and hedge funds, among other investment vehicles.

Published by HT Digital Content Services with permission from VC Circle.