The fund has a target corpus of ₹2,000 crore, comprising a base size of ₹1,000 crore and a greenshoe option of another ₹1,000 crore. It will be raised through private placement from eligible investors, including high-net-worth individuals, ultra-high-net-worth individuals, family offices and institutions.
The fund will follow a sector-agnostic performing credit strategy and lend to established private mid-market companies with a track record of operations and cash flows. The investments will be backed by collateral and covenant protections, according to the company.
The fund will provide financing for growth, acquisitions, refinancing and working capital requirements. Godrej Asset Management said it will assess potential investments based on business fundamentals, credit quality and the borrower’s repayment capacity.
The investment strategy will focus on directly originating deals, with the fund prioritising businesses with which its team has existing relationships. The company said it has an investment pipeline to support deployment of capital.
Private credit funds typically provide loans or structured financing directly to companies outside the traditional bank lending channel. For businesses, such financing can offer greater flexibility in terms of structure and repayment, while investors take on credit risk in return for potential returns.
The launch expands Godrej Industries Group’s financial services operations beyond lending and wealth management into asset management.Manish Shah, non-executive director at Godrej Asset Management and managing director and chief executive officer of Godrej Capital, said private credit was a “natural extension” of the group’s financial services business.
Pavan Manchala, chief investment officer for private credit at Godrej Asset Management, said the fund would focus on identifying resilient businesses and structuring investments with an emphasis on risk management.
