Vivriti Asset Management, a fixed-income alternative investment fund (AIF) platform that provides debt financing to middle-market domestic companies, has set a target to grow its assets under management (AUM) to 5 billion dollars by FY26, its founder said.
“We are very optimistic about the growth potential of the mid-market segment and aim to build $5 billion in assets under management by FY26,” said Vineet Sukumar, Founder and CEO of Vivriti. Asset Management.
He said few players loaned to this segment. According to the company, the middle market includes companies with a turnover of more than ₹50 crore to ₹5,000 crore.
Demand is so high that the fixed income asset manager has launched at least five alternative asset funds in the past year.
“India’s under-penetrated debt markets provide investors with highly impactful yet commercially rewarding investment opportunities and a fund house like Vivriti effectively channels much-needed funding,” he said. declared.
The fund house invests in the debt of small and medium-sized financial institutions and then lends to microenterprises and other well-financed companies.
“We seek to bring the successful credit market to investors in India and abroad – a market with huge potential and a wide gap between perceived risk and actual risk,” Mr Sukumar said.
Vivriti Asset Management‘s parent company, Vivriti Capital, a mid-sized NBFC, lends to small and medium-sized businesses. It recently closed an $85 million Series C investment round.
The company had raised $55 million from existing investors Lightrock and Creation Investments and around $30 million from the TVS Shriram Growth Fund earlier this month.
With this financing round, Vivriti Capital plans to develop its portfolio in its target segment. Currently, NBFC and AIF jointly manage assets of just over ₹5,200 crore. “In our history, we have had only one delisting. Our strict due diligence and focused approach has kept gross non-performing assets to 0.25% of our portfolio,” Sukumar said.
“Basically, both companies lend to operating companies that are performing well and not failing and we call this space a performing credit space. AIF develops funds which it lends, and NBFC lends directly…” he said.
“…if I look at it in terms of credit ratings, you’ll have unrated companies, BBB rated companies, and A (not AA or AAA) rated companies. The big lenders don’t lend to this segment. We seek to attract very large pools of capital from investors who accept our risk appetite and underwriting and lend to this segment,” he added.
In addition to building its loan corpus, Vivriti Capital invests in technology to detect early signals of distress from its portfolio companies. It is also developing technology to map the digital footprint of companies it would lend to in the future.