Arka Investment Advisory Services Private Limited, a subsidiary of non-banking financial company Arka Financial Holdings, announced the first close of Arka Credit Fund I, a scheme of its maiden credit fund Arka Credit Fund.
Financial Holdings is a wholly-owned subsidiary of Kirloskar Oil Engines.
The sector-agnostic Category-II Alternative Investment Fund (AIF) has a target corpus of Rs 250 crore with a green shoe option of Rs 50 crore. It has a 4.5-year tenure, and the sponsor (and/or its subsidiaries) has approved an investment of Rs 55 crore in the fund.
“We are planning to make 8-10 investments at a ticket size of Rs 30-50 crore in performing credit space at an IRR of 14-16%. Our maiden offering has a strong backing from our sponsors, and so far, Arka Credit Fund I has received an encouraging response from marquee investors,” said Sonit Singh, Director and Head of Arka Investment Advisory Services.
Arka Credit Fund I aims to provide structured solutions for mid-market corporates and conglomerates to support their business needs. It is backed by a team that manages assets in the performing credit and structured credit space and has a cumulative experience of more than 100+ years.
“With a strong track record of investing in investment grade credit space along with the inherent demand from the market post-pandemic, Arka Group now launches this credit fund to fill the gap which persists in the market,” said Sonit.