Vivriti Asset Management launches two debt AIFs

Vivriti Asset Management (VAM), announced the launch of two alternative investment funds (AIFs) –Alpha Debt Fund and Alpha Debt - Enhanced Fund on Tuesday. Both are Sebi-registered category II close ended debt funds with a 3.5 year tenor.

The Alpha Debt Fund, with a target AUM of Rs 400 crore, will invest in debt issued by operating companies with a track record of scale, profitability and access to capital, and will target an annualized yield of 7.5 per cent post tax, fees and expenses, to investors. The fund is sector agnostic, and aims median portfolio rating of A category.

The Alpha Debt - Enhanced Fund, with a target size of Rs 250 crore, will invest in debt issued by high-growth enterprises in well understood sectors, with demonstrated access to capital. The fund is sector agnostic and aims median portfolio rating of BBB. This fund issues two classes of units to investors – senior and subordinated – to provide investors with differential levels of risk-protection and return. The fund targets an annualized yield of 9.4 per cent and 13.5 per cent to investors in senior and subordinated units respectively, post expenses and taxes.

Soumendra Ghosh, Chief Investment Officer, Vivriti Asset Management, said: “The performing credit space in India continues to be a massive untapped opportunity for predictable holding period and inflation-beating returns. Ability to source investment opportunities and track performance of investments ongoing basis in the absence of widely available data, while keeping portfolios granular, have been entry barriers for asset managers in this space. Deep use of data and technology to source, assess and monitor assets, overlaid with physical diligence, and fund vehicles structured right are some of the key ingredients to do this right."

Vivriti Asset Management has raised commitments of over Rs 1,500 crore across its funds and provides tailored debt of Rs 25-75 crore to emerging and mid-sized operating companies, for 2-5 year tenor.