New Delhi, July 8 -- Vivriti Asset Management Pvt Ltd, the private credit investing arm of the Chennai-headquartered Vivriti Group, intends to make fundraising milestones of two alternative investment vehicles in coming months and is planning to launch a new offering to expand its portfolio of fixed-income products, a top executive told VCCircle.

The firm is readying the paperwork to seek a licence from the Securities and Exchange Board of India for debt portfolio management services, said Dipen Ruparelia, chief business and products officer at Vivriti Asset.

"Hopefully, the application process should be completed in 30 days. From thereon, it may take a couple of months to get SEBI approval," he said.

"We are predominantly looking at solutions for corporate treasuries in the investment horizon of six to 18 months at this stage," he added.

Diversified Bond Fund

Vivriti Asset, incorporated in 2019, manages private credit funds and invests in debt issued by mid-sized companies. It has invested over Rs 11,000 crore in 125 companies since inception, and counts more than 1,760 limited partners in its funds.

The firm has launched 11 schemes across four vintages. Its latest offering is the Diversified Bond Fund-III, which was launched in early 2026. The fund has a target corpus of Rs 2,500 crore and a greenshoe option of the same amount.

"We have just started raising commitments and our target for the first close is around Rs 500-600 crore. We will likely do the initial close by September-October, and the final close in the next 15 months," Ruparelia said.

Broadly, the fund intends to invest in over 20 entities at an operating company and holding company level. Its average ticket size would be Rs 150 crore and it is targeting a gross internal rate of return (IRR) of 16-17%.

"The fund will be sector-agnostic. We prefer asset-heavy, traditional brick-and-mortar companies. We would not invest in startups or mid-market companies seeking capital for growth or consolidation," he said.

The vehicle's predecessor, the Diversified Bond Fund-II, was launched in 2024 and has deployed Rs 1,500 crore across 16 entities. For instance, it invested Rs 175 crore in an auto component manufacturer for promoter stake consolidation, and Rs 280 crore for the completion and operation of a multilateral agency-funded road asset.

Overall, Vivriti Asset has fully exited and returned the capital raised for its first vintage of funds. The first vintage of four funds raised total commitments of more than Rs 1,280 crore, according to Vivriti's website.

The first vintage included its maiden offering, the Samarth Bond Fund. It began raising this fund in 2019 and collected Rs 265 crore from investors. The firm returned capital from this fund and closed it in 2024. The fund realised a gross IRR of 15.5%. Another fund of this vintage, the Short-Term Debt Fund, raised Rs 350 crore and made over 25 investments. The Short-Term Bond Fund realised 12.5% over three years.

The second vintage of four funds has repaid 75% of the total Rs 2,100 crore capital raised, and is set to complete the exit by September this year. The firm treats this product bundle-Emerging Corporate Bond Fund, Alpha Debt Fund, Alpha Debt Enhanced Fund and Promising Lenders' Fund II-as its maiden diversified bond offering. The third vintage comprises two funds and raised commitments of Rs 2,935 crore, per its website.

Among thematic funds, the firm raised Rs 700 crore across the two Promising Lenders' Funds and distributed Rs 657 crore till date. Similarly, the India Impact Bond Fund has raised Rs 371 crore and distributed Rs 454 crore. These funds intend to support small and medium-scale enterprises.

GIFT City fund

Separately, the firm has launched a Vivriti India Retail Assets Fund (VIRAF), an asset-backed securitisation fund domiciled in Gujarat's GIFT City. The fund has received commitments of $190 million from multilateral organisations, a global asset manager, and development finance institutions.

Earlier this year, Germany's DEG invested $25 million in VIRAF. Prior to this, the firm received debt commitments from Austrian development bank Oesterreichische Entwicklungsbank AG (OeEB) among others. The fund is targeting a corpus of $250 million and has so far invested over $330 million in securitised notes (pass-through certificates) and bonds in India.

"We are in active discussions with an offshore investor for VIRAF," Ruparelia said. "The ticket size of that transaction could be fairly large. That will solve for the remaining $60 million, as well as additional capital that we may need for refinancing existing vendors," he said, adding that the firm expects to receive this funding in the next three months.

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