True North forays into private credit, raises $120m

Indian private equity fund True North said on Monday it has raised more than $120.13m as it forays into the fast-growing private credit sector.

The company plans to do deals ranging from $9.75m to $26m  with mid-size companies, aiming for a return of 15%-18%, it said in a statement.

The platform, set up in 2022, aims to close a funding deal by Dec. 31, the firm said

The fund raise comes at a time when a growing number of Indian investors are expanding their private credit business, in a move to fill a void left by banks and non-bank lenders and mirroring a pick-up in activity across Asia.

Private credit funds typically invest in debt or hybrid securities of unrated and lower-rated companies.

In India, Kotak Alternate Assets Managers, Edelweiss Alternatives Asset Advisors, InCred Alternative Investments and Vivriti Asset Management are looking to increase the size of funds or raise new funds, officials at these firms have said.

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TrueNorth is a leading private equity firm in India with a proven track record of investing in and building high-performing businesses. The firm has a strong commitment to ESG investing and seeks to partner with entrepreneurs who share its values of doing things “The Right Way.” TrueNorth has invested close to $3bn across six investment vehicles in sectors such as healthcare and pharmaceuticals, financial services, consumer products and services, and technology products and services.

TrueNorth typically invests in mid-market businesses with enterprise values between $50m and $500m. The firm seeks to partner with entrepreneurs who are passionate about building exceptional businesses that deliver superior value to all stakeholders

Source: Reuetrs

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