360 ONE Asset Management, formerly known as IIFL Wealth & Asset Management, on Friday, said it has raised $258 million (Rs 2,130 crore) for its largest credit fund to date, exceeding its initial target of Rs 1,500 crore.
The fund, which is the firm’s fourth credit fund is more than twice the size of its earlier funds and witnessed participation from corporate treasuries, family offices, high net-worth individuals (HNIs), and domestic financial institutions.
The rising interest of investors in the private credit space and the steady track record of 360 ONE Asset has helped garner collections of 1.5 times the originally envisaged corpus, the firm said.
The sector-agnostic fund said its emphasis is on providing credit capital to established well-rated corporates and financial institutions with a proven track record and strong operating history.
Earlier this year, 360 ONE acquired a controlling stake in the investment platform Mumbai Angels Network. Following the deal, the investment platform has also launched two funds to back early-stage startups.
The platform has over 700 investors spread across over 60 global cities. It has investments in a variety of domains such as technology, consumer, life sciences, defense technology, space technology, electric vehicles, and hemp seeds. Its portfolio companies include InMobi, Dhruva Space, Myntra, Purplle, and BluSmart.
With the closure of this fund, the AUM of the private credit strategy under 360 ONE Asset is inching close to $1 billion and it aims to achieve this milestone in FY24.
“In India, the private credit asset class is becoming attractive and seeing significant traction as it is a resilient asset class that provides access to bespoke investment opportunities, optimal portfolio diversification and enhanced risk-adjusted returns,” Aakash Desai, CIO & Head, Private Credit, 360 ONE Asset, said.
At a time when volatility in the equity markets, coupled with a high-interest rate environment, is making it difficult for companies in India to raise capital, more asset managers are launching their credit funds.
Last month, Centrum Alternatives, an asset manager headquartered in Mumbai, said it was looking to launch its second private credit fund. Among others who are raising credit funds, InCred Asset Management is targeting a Rs 500-crore ($61.2 million) corpus with a greenshoe option of another Rs 500 crore. More recently, Stride Ventures announced the first close of its third venture debt fund at $100 million.
