Avendus Group has secured investor commitments exceeding Rs 2,200 crore for its Avendus Structured Credit Fund III, prompting the activation of its greenshoe option amid strong market demand. The milestone reflects growing confidence in India’s private credit landscape and highlights the firm’s expanding presence in high-yield performing credit strategies.
Notably, the fund achieved its first close in April 2025 with commitments of approximately Rs 1,000 crore, and it reached its base fund size within just eight months. Meanwhile, Avendus now targets a total corpus of Rs 4,000 crore, including a Rs 2,000 crore greenshoe, marking a sharp scale-up from its previous fund, which closed at around Rs 1,000 crore.
Importantly, the strong fundraising momentum underscores rising investor conviction in structured credit as an asset class. Average ticket sizes increased to nearly Rs 10 crore in the latest fund, compared with Rs 4 crore in the prior vehicle, while several investors committed more than Rs 100 crore. As a result, the fund attracted a diversified mix of high-net-worth individuals and institutional investors.
At the same time, the fund has already deployed over Rs 1,200 crore, representing close to 60 percent of its committed capital, across a well-diversified portfolio spanning multiple sectors and business models. Currently, the portfolio tracks a gross internal rate of return of around 18 percent, reinforcing the strategy’s performance credentials.
According to the firm, the investment approach focuses on solution-oriented structured credit, including promoter financing, acquisition funding, and growth capital. Typically, the fund executes transactions ranging between Rs 200 crore and Rs 500 crore, while also offering co-investment opportunities to aligned investors.
Additionally, the portfolio follows a sector-agnostic strategy and spans pharmaceuticals, healthcare, manufacturing, consumer goods, chemicals, technology, and B2B services. Through this approach, Avendus aims to partner with fundamentally strong businesses that require flexible and customized capital solutions.
Over the past 15 years, Avendus Finance has built a high-yield performing credit franchise, completing more than 100 transactions with cumulative deal values exceeding Rs 15,000 crore. Consequently, the firm expects India’s private credit ecosystem to continue expanding, driven by rising demand from mid-market companies and sponsor-led opportunities.
Industry estimates indicate that private credit deployments in India reached nearly USD 15 billion in calendar year 2025, while total assets under management climbed to USD 25–30 billion amid increasing institutional participation. Looking ahead, Avendus expects deeper institutional allocations and a broader risk-return spectrum ranging from 12 percent to over 22 percent to shape the next growth phase, positioning private credit as a core allocation for sophisticated investors.
