Avendus Secures Over INR 1,000 Cr in First Close of Structured Credit Fund III ASCF III will target a diversified portfolio of 12 to 18 investments, with individual ticket sizes ranging between INR 200 crore and INR 500 crore.
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Avendus has achieved the first close of its Structured Credit Fund III (ASCF III), garnering investor commitments exceeding INR 1,000 crore since its launch in January 2025.
The fund, registered with SEBI as a Category-II Alternative Investment Fund (AIF), aims to raise INR 2,000 crore, with an additional green shoe option of INR 2,000 crore.
ASCF III will target a diversified portfolio of 12 to 18 investments, with individual ticket sizes ranging between INR 200 crore and INR 500 crore. The fund seeks to deliver gross internal rates of return (IRRs) between 16% and 18%.
"The fund has already drawn 15% of the capital and completed its first investment," said Anshul Jain, Executive Director at Avendus Structured Credit Fund, highlighting early momentum in deal execution.
Continuing its focus on high-yield private credit, ASCF III will invest primarily in secured debt of operating and holding companies, with selective exposure to hybrid instruments. The fund is sector-agnostic but will leverage Avendus' deep corporate relationships and domain knowledge in industries such as pharmaceuticals, healthcare, manufacturing, consumer, chemicals, technology, and B2B services.
"The private credit space in India is evolving rapidly, driven by growing demand from mid-to-large companies and promoters seeking bespoke capital solutions," said Nilesh Dhedhi, Managing Director at Avendus Finance. "With traditional lenders constrained by a standardized lending approach coupled with volatility in other capital market sources, we see a rising preference for flexible capital that can help scale the ambitions of Indian companies and BIZ Experiencess."
Early investors include a mix of returning participants and new backers, notably high-net-worth individuals and family offices.
Avendus has seen strong performance in its previous credit funds. ASCF I, launched in 2017, was fully returned by 2022 with a gross IRR of 18%. ASCF II, launched in January 2022, is currently tracking an expected gross IRR of 17%.
"As one of the earliest and most active private credit platforms in the country, Avendus has emerged as a trusted name in the high-yield performing credit segment," said Kaushal Aggarwal, Co-founder of Avendus.
Founded in 1999, Avendus operates across investment banking, institutional equities, wealth management, credit solutions, and asset management, with a presence in 10 cities globally.
