Vivriti Asset Management is launching a new fund that will invest in small and medium-sized businesses, calling it the country's first for private credit investment in asset-backed securities.
Vineet Sukumar, founder and managing director of Vivriti, stated in an interview that the Chennai-based company is aiming for a total of USD 250 million for its 'Vivriti India Retail Assets Fund' and has already raised USD 106 million from International Finance Corp (IFC) and M&G Investments. He stated that the firm has 18 months to raise the balance, and that the fund's term is 10 years.
Mid-sized non-bank financial enterprises and microfinanciers will sell their loans in the SME financing, commercial vehicle lending, two-wheeler funding, and microfinancing sectors to a special purpose vehicle under Vivriti's new vehicle. The SPV will raise funds from Vivriti's credit fund by issuing securities secured by loan receivables.
The USD 250 million fund would be based in India's GIFT city and will hold between 40 and 50 ABS investments at any given moment. According to the company, this would limit exposure to a single investment to USD 5 million to USD 7 million.