• Avendus Structured Credit Fund III secured over ₹1,000 crore in its first close since launching in January 2025.
  • The fund targets 12–18 investments with ticket sizes of ₹200–500 crore and expected gross IRRs of 16–18%.

Avendus has successfully achieved the first close of its Structured Credit Fund III (ASCF III), securing more than ₹1,000 crore in commitments just months after its January 2025 launch. The fund has attracted investments from a mix of returning backers and new investors, including high-net-worth individuals and family offices.

"Achieving commitments of over ₹1,000 crore, equivalent to our previous fund size, within a short period of time is clear testimony to the continuing trust investors have placed in the strategy, team and strength of the Avendus ecosystem," said Anshul Jain, executive director of Avendus Structured Credit Fund.

The fund has already drawn 15% of the capital and completed its first investment.

Registered as a Category-II Alternative Investment Fund with SEBI, ASCF III is the latest in Avendus’ high-yield private credit series. It targets growth and mature-stage companies with strong business models, offering tailored capital solutions to help scale operations. The fund will primarily invest through secured debt instruments, with selective exposure to hybrid instruments.

Although sector-agnostic, Avendus will leverage its deep industry knowledge and relationships in key sectors including pharmaceuticals, healthcare, technology, manufacturing, chemicals, consumer, and B2B services.

Growing Demand for Flexible Credit

As traditional lenders face limitations, demand for flexible private credit is on the rise.

"With traditional lenders constrained by a standardised lending approach coupled with volatility in other capital market sources, we see a rising preference for flexible capital that can help scale the ambitions of Indian companies and entrepreneurs," noted Nilesh Dhedhi, managing director of Avendus Finance.

Avendus plans to raise a total of ₹2,000 crore for ASCF III, with a green shoe option for an additional ₹2,000 crore. The fund will target gross internal rates of return between 16%–18% across a diversified portfolio of 12 to 18 investments.

Edited by Harshajit Sarmah