Avendus PE Investment Advisors has announced the first close of its third private credit fund, Avendus Structured Credit Fund III (ASCF–III), securing over ₹1,000 crore in investor commitments since its launch in January 2025. The fund aims to raise a total corpus of ₹2,000 crore, with a green shoe option for an additional ₹2,000 crore.
Targeting Growth-Stage Companies
ASCF–III is registered as a Category-II Alternative Investment Fund with the Securities and Exchange Board of India (SEBI). It focuses on mature and growth-stage companies with strong, differentiated business models, offering capital solutions that can significantly enhance their value. The fund plans to build a diversified portfolio of 12 to 18 investments, with ticket sizes ranging from ₹200 crore to ₹500 crore, targeting gross internal rates of return between 16% and 18%. (economictimes.indiatimes.com)
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Sector-Agnostic Approach
While ASCF–III is sector-agnostic, Avendus intends to leverage its deep corporate relationships and industry expertise in sectors such as pharmaceuticals, healthcare, manufacturing, chemicals, technology, consumer goods, and B2B services. This strategic focus aligns with the fund’s objective to provide customized private credit solutions, primarily through secured debt investments in both operating and holding companies, with selective exposure to hybrid instruments where appropriate. (economictimes.indiatimes.com)
Rising Preference for Flexible Capital
The demand for flexible capital is growing as traditional lending remains rigid. With traditional lenders constrained by a standardized lending approach coupled with volatility in other capital market sources, there is a rising preference for flexible capital that can help scale the ambitions of Indian companies and entrepreneurs. Avendus has executed transactions worth over ₹10,000 crore over the past eight years and has experience across more than 100 deals. (economictimes.indiatimes.com)
Aiming to Raise ₹2,000 Crore
The fund plans to raise a total of ₹2,000 crore, with a green shoe option for another ₹2,000 crore. ASCF–III will aim to build a diversified portfolio of 12 to 18 investments, with ticket sizes ranging from ₹200 crore to ₹500 crore and targeted gross internal rates of return between 16% and 18%. Avendus’ earlier funds have delivered strong returns. ASCF–I, launched in 2017, completed nine transactions and returned capital by mid-2022 with a gross IRR of 18%. ASCF–II, launched in 2022, is fully deployed and is currently tracking an expected gross IRR of around 17%. (economictimes.indiatimes.com)
Avendus’ Track Record in Private Credit
Founded in 1999, Avendus is a diversified financial services firm with operations in investment banking, wealth management, equities, credit solutions, and asset management across 10 cities in India, the United States, and Singapore. The firm’s early presence in the private credit market has made it a leader in high-yield performing credit. Leveraging the group’s deep-sector expertise and extensive corporate relationships, the platform has been consistently offering differentiated investment opportunities and attractive outcomes for investors. (economictimes.indiatimes.com)
Conclusion
Avendus’ successful first close of ASCF–III underscores the growing demand for flexible capital solutions among Indian companies. By focusing on growth-stage businesses across diverse sectors, the fund aims to bridge the financing gap between traditional debt and equity, offering investors attractive returns while supporting the expansion ambitions of Indian enterprises.
