Vivriti Asset Management (VAM), one of India’s leading private credit asset managers, announced the successful completion and exit of its Vintage II funds (comprising three performing credit schemes), within the stipulated fund life, while meeting the funds’ objectives.
With this, VAM has returned more than ₹3,400 crore to investors through capital giveback and income distributions, across 2 vintages of funds. The lifecycle of these funds spanned periods of varying business climate, policy rates, liquidity, and geopolitical backdrop.
Across vintages, VAM has offered schemes with conservative and moderate risk profiles. In its Vintage II strategies, VAM has raised ₹1,700 crore of investor commitment and invested more than ₹3,500 crore in 45+ portfolio companies, through the lifetime of these funds.
Investees of the fund are businesses operating in sectors such as infrastructure (roads, ports, airports, digital), clean energy, manufacturing (fertilizer, electronic devices), and services (logistics, co-working, financial, enterprise SaaS).
Vintage II funds collectively returned more than ₹2,260 crore in capital and income to investors, generating gross IRR of c.15% for the moderate scheme, while the conservative scheme (which only invests in portfolio companies rated in the ‘A’ category) delivered gross IRR of c.12%.
The return to investors, net of fees and expenses, aggregated across all investors, was c.13% for the moderate scheme and c.10.5% for the conservative scheme.
On the exits, Vineet Sukumar, Founder and MD, Vivriti Asset Management said: “Private credit is increasingly addressing a financing requirement that sits between conventional bank lending and equity capital.
Several fundamentally sound, cash-generating businesses require more flexible capital than traditional lending structures may be able to provide. Our approach has therefore been to structure transactions where the return is supported by strong cash flows, while building in downside protection.
Downside protection has been built in through appropriate security as well as diversification across sectors and businesses.”
Soumendra Ghosh, Chief Investment Officer, Vivriti Asset Management, said: “These fund givebacks and the strong outcomes serve to validate the role of credit in investor portfolios, as well as the opportunity cost of not allocating to the asset class.
With ₹3,400 crore returned to investors across 2 vintages of funds over the past 7 years, on expected lines, these funds have demonstrated the very outcomes that the asset class aims to deliver – steady income, predictable return of and on capital, and all of it with low volatility in outcomes. Equally pertinent in outcomes are the business problems we solved for investee firms through flexible capital solutions.”
