2 weeks ago
Godrej Industries Targets ₹2,000-Crore AIF for India’s Private Credit
Godrej is starting a fund that will lend money to established medium-sized businesses.
It hopes to raise up to ₹2,000 crore.
The fund will collect money from wealthy individuals, family offices and institutions.
It will not focus on only one type of industry.
The loans may help businesses grow, buy other companies, refinance debt or pay for working needs.
Businesses will provide valuable assets and agree to rules that protect the lenders.
Godrej says this type of financing can give companies flexibility without making them sell ownership shares.
The article says private credit investments in India can offer returns of about 14–22%, depending on the deal.
Godrej Industries Group is entering India’s private credit market through a Category II alternative investment fund.
The fund targets ₹2,000 crore, comprising a ₹1,000-crore base corpus and a ₹1,000-crore greenshoe option.
Godrej Asset Management Company will offer the fund through private placement to HNIs, UHNIs, family offices and institutional investors.
The sector-agnostic fund will provide performing credit to established private mid-market companies, backed by collateral and covenant protections.
Investments may support growth, acquisitions, refinancing and working capital, while Indian private credit returns are estimated at 14–22%.
- Who
- Godrej Industries Group, through Godrej Asset Management Company, is launching the fund; eligible investors will provide capital.
- What
- A Category II alternative investment fund targeting ₹2,000 crore for private credit investments.
- Where
- India’s private credit market.
- When
- The announcement was made on Tuesday; the articles do not specify the date.
- Why
- To provide flexible, non-dilutive financing to established private mid-market companies and expand Godrej’s asset-management capabilities.
Key facts
- Fund type
- Category II alternative investment fund
- Target corpus
- ₹2,000 crore
- Base corpus
- ₹1,000 crore
- Greenshoe option
- Additional ₹1,000 crore
- Eligible investors
- HNIs, UHNIs, family offices and institutional investors
- Investment focus
- Sector-agnostic performing credit for established private mid-market companies
- Indicative returns
- 14–22%, depending on the type of deal
Quotes
Pavan Manchala
Chief Investment Officer, Private Credit, Godrej Industries Group
“Many well‑run mid‑sized businesses need capital that offers greater flexibility than conventional financing, without requiring them to dilute equity. We see an opportunity to address that need by combining our understanding of Indian businesses with disciplined capital.”
financialexpress.com
thehansindia.com
“Enduring outcomes in the business come from identifying resilient businesses, structuring capital thoughtfully, and maintaining underwriting discipline.”
thehansindia.com
Sources
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