New Delhi, Aug. 18 -- Godrej Industries Group said Tuesday it has entered India's growing private credit market with its maiden alternative investment fund that will make debt investments in local companies.
The group, via its asset management arm, has launched a fund that seeks to raise as much as Rs 2,000 crore (around $209 million). This comprises a base corpus of Rs 1,000 crore and a greenshoe option of an equal amount.
Godrej Asset Management Ltd joins several other local companies that have launched private credit operations in recent years. Earlier this year, Oxyzo, the non-bank lending arm of B2B commerce platform OfBusiness, entered the private credit space with the launch of a Rs 500 crore ($54.5 million) performing credit fund. Similarly, HDFC Asset Management Company entered the private credit space with the launch of an alternative investment fund.
Mumbai-based Godrej Industries
The fund will focus on performing credit opportunities in established private mid-market companies across sectors, Godrej said in a press note. The company did not disclose the name of the fund.
The fund will provide capital for growth financing, acquisitions, refinancing and working capital requirements. It will evaluate companies on the basis of business fundamentals, credit quality and repayment capacity.
The investment strategy will be anchored in direct origination, prioritising companies with which the team has established relationships. An established investment pipeline will support active capital deployment; minimise cash drag and maintain underwriting discipline, according to the note.
Godrej said the fund is targeting high-net-worth individuals, ultra-HNIs, family offices, and institutional investors as limited partners.
"Having invested across credit cycles, we believe enduring outcomes come from identifying resilient businesses, structuring capital thoughtfully, and maintaining underwriting discipline," Pavan Manchala, chief investment officer for private credit at Godrej, said in the note.
"Our focus will be on providing flexible capital to strong businesses, backed by prudent risk management and long-term partnerships that support their growth ambitions," Manchala added.
The private credit fund comes soon after Godrej Industries, through subsidiary Godrej Investments, announced the launch of the wealth management business last month. Godrej Wealth will operate alongside Godrej Capital, the group's lending business, together forming the financial services arm of the Godrej Industries Group.
Subsequently, Godrej Wealth appointed former Kotak Mahindra Bank executive Pavan Manchala as head and chief investment officer for private credit.
The platform will offer various products such as mutual funds, portfolio management services, alternative investment funds, private credit, and bespoke portfolio solutions.
The wealth management platform aims to build assets under management of Rs 1 trillion by 2031. It intends to expand its presence across 35 locations over the next five years, the note said.
The business will primarily cater to clients with investable assets of Rs 2 crore and above, including entrepreneurs, new-age wealth creators, multi-generational business families, NRIs, and sophisticated investors with multi-asset needs.
Published by HT Digital Content Services with permission from VC Circle.