New Delhi, Aug. 13 -- BlackSoil Asset Management, the asset management arm of alternative credit platform BlackSoil Group, has hit the final close of its second credit fund BlackSoil India Credit Fund (BICF) II, a top company executive told VCCircle.
The performing credit fund, launched in late 2023, recently hit its target corpus of Rs 500 crore (around $52.5 million), deploying the capital across 40 companies. In fact, the fund has deployed a total of Rs 750 crore so far through capital recycling by clocking exits from 10 companies.
BICF II, a SEBI-registered Category II alternative investment fund (AIF), focusses on providing credit to high-growth businesses across sectors including financial services, fintech, climatetech, electric vehicles, healthcare, consumer, SaaS, deeptech and mobility.
It offers flexible, non-dilutive performing credit solutions to companies looking to scale up while preserving capital efficiency.
Its current portfolio is diversified across sectors, with 35% of the allocation going to consumer and internet businesses (B2C or D2C), another significant portion invested in fintech and financial services, and the remaining channelled to mobility, IoT, SaaS and deeptech sectors.
The limited partner (LP) base of the fund is spread across family offices and high-net-worth individuals, with the majority of commitments coming from repeat investors.
"The fund was built on a simple conviction that India's next phase of growth will be powered by sustainable, well-run businesses with strong cash flows and predictable revenues.
"Our vision extends beyond this fund. We intend to build a platform of focussed, thematic credit funds that address specific market opportunities and investor needs," said Chirag Shah, executive director, BlackSoil Asset Management.
Maiden fund, credit strategy
BlackSoil's maiden credit fund, BlackSoil India Credit Fund I, had raised Rs 280 crore, deploying a total of Rs 550 crore in its fund life through capital recycling. It deployed the capital across 44 companies, of which 40 investments have been exited; 4 remain outstanding and are expected to be completed over the next 6-9 months.
India's private credit market has grown rapidly over the last few years with many asset management companies foraying into the space. Funds tap into the widening funding gap for growth-stage businesses in the wake of bank funding tightening and capital requirements for growth.
The company believes that its credit underwriting is evolving in step with market demands, shifting from a venture debt-centric focus to a broader performing credit strategy.
Apart from domestic credit funds, the platform also has an offshore credit fund. As reported by VCCircle, it launched a Southeast Asia-focussed credit fund to expand its investment landscape. The new vehicle, BlackSoil Global Credit Opportunities Fund (The SEA Fund), has a target corpus of $50 million (Rs 438 crore) and is raising capital from the firm's existing limited partners (LPs) as well as new investors. Established in 2016, BlackSoil is an alternative credit platform comprising a non-banking financial corporation (NBFC) and SEBI-registered AIFs.
With assets under management (AUM) of $275 million, BlackSoil serves MSMEs, enterprises, and retail businesses across India and Southeast Asian markets. The platform provides alternative credit solutions to fast-growing and underserved new-economy businesses across short- and long-term capital needs.
The platform is backed by leading global development finance institutions (DFIs) and institutional investors including FMO, Gray Matters Capital and Triodos Investment Management, along with the family offices of Allcargo Logistics, Navneet Education and Mahavir Agency.
Published by HT Digital Content Services with permission from VC Circle.