May 8, 2025: Avendus announced today that it will build a diversified portfolio of 12-18 investments, with ticket sizes ranging between Rs 200 crore and Rs 500 crore, and targeting gross IRRs of 16-18%.
To realise this projection, it revealed the first close of its Structured Credit Fund III (ASCF III), raising more than Rs 1,000 crore in investor commitments since its debut in January 2025.
The Alternative Investment Fund is registered as a Category-II Alternative Investment Fund with SEBI, ASCF III , it plans to raise Rs 2,000 crore, with a green shoe option of an additional Rs 2,000 crore.
This sector-agnostic fund will focus on sectors wherein Avendus has proprietary corporate access and strong domain expertise, that include pharmaceuticals, healthcare, manufacturing, consumer, chemicals, technology, and B2B services.
Avendus Targets ₹2,000 Cr Fund with 16–18% Returns Across 18 Deals
Anshul Jain, Executive Director at Avendus Structured Credit Fund, stated “The fund has already drawn 15% of the capital and completed its first investment.”
ASCF III is the latest in the Alternative Investment Fund’s high-yield private credit fund series, targeting secured debt investments in operating and holding companies. The fund also seeks for selective exposure to hybrid instruments.
“The private credit space in India is evolving rapidly, driven by growing demand from mid-to-large companies and promoters seeking bespoke capital solutions,” said Nilesh Dhedhi, Managing Director at Avendus Finance.
“With traditional lenders constrained by a standardized 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,” Dhedhi added.
The fund has attracted backing from both returning investors and new backers, including high-net-worth individuals and family offices, according to the firm.
Avendus’ past investments in this strategy include ASCF I, introduced in 2017 and fully returned by 2022 with a gross portfolio IRR of 18%, and ASCF II, launched in January 2022, currently tracking an expected gross IRR of around 17%.
“As one of the earliest and most active private credit platforms in the country, Avendus has emerged as a trusted name in the high-yield performing credit segment,” said Kaushal Aggarwal, Co-founder of Avendus.
“Leveraging the group’s deep sector expertise and extensive corporate relationships, the platform has been consistently offering differentiated investment opportunities and attractive outcomes for investors.”
Avendus Group, founded in 1999, operates across investment banking, institutional equities, wealth management, credit solutions, and asset management. It has a presence in 10 cities across India, the US, and Singapore.
