Performing Credit fund, a performing credit fund is a sector-agnostic fund with a substantial capital commitment from CDPQ (Caisse de dépôt et placement du Québec) to invest in mid to large-sized corporates across sectors.

Well Thought Through Investment Strategy

India is passing through a phase of secular multi-sectoral growth and the Fund intends to follow a disciplined investment approach to address the most appealing opportunities. The investment strategy of the Fund takes into consideration the growth in the Indian economy from USD 2 trillion to USD 5 trillion in the next few years, thereby providing significant investment opportunities across various sectors.

Key Tenets of Investment Strategy

Invest in Mid-Market Corporates

Mid-market corporates are the mainstay of the Indian economy contributing a significant portion of industrial output and Indian exports. Most of these mid-market corporates aspire to become large institutionalized organizations over the next decade. The key challenges faced by these mid-market corporates are the availability of capital, a focus on corporate governance and the ability to attract the right talent.

Investment Themes

The Fund is focused on investment themes such as solving for inefficient capital structure leading to temporary cashflow mismatch, providing growth capital to companies, acquisition funding, special situation funding like last-mile funding etc.

Strong Focus on Risk Assessment and Monitoring

A robust risk management system involves a rigorous underwriting process, internal and external diligence and identification of key items to be monitored at the underwriting stage itself. Active portfolio management and monitoring involve constantly mapping and escalating any early warning signals and ongoing feedback to the counterparts about creating further efficiencies in their capital structure, capital allocation and subsequent fundraising dynamics.

The Fund could potentially invest in:

Stake Consolidation

Mezzanine Structures

Inefficient capital structure leading to temporary cash-flow-mismatches situations

Growth capital to companies

Special situation funding like last-mile funding