Indian financial services group JM Financial on Tuesday said it has raised $73 million in commitments and hit the first close of its maiden performing credit fund.
The fund will look at investment opportunities across consumer, healthcare, manufacturing, conglomerates, B2B and services, renewables, and ESG-oriented companies and sectors.
The JM Credit Opportunities Fund – 1, which was launched in March 2023, is expected to shortly announce its first few investments over the current quarter. With a target deployment of Rs. 1,500 crore, the fund said it is targeting a final close around June 2024.
The fund said it targets gross returns in the mid-to-high teens through a mix of secured lending, with potential upside participation in the equity performance of underlying companies. It aims to capture opportunities from the dislocation in credit markets caused by regulatory differences between banks and NBFCs, for both promoters and operating companies.
“The fund underlines the strong appetite of HNIs and family offices for this asset class. Over time, we plan to launch adjacent strategies in line with the firm and team’s expertise, and evolving market opportunities,” Anuj Kapoor, Managing Director & CEO, Private Wealth and Alternatives Asset Management, JM Financial, said.
JM Financial’s businesses include investment banking, mortgage lending, alternative and distressed credit and asset management, wealth management, and securities business (Platform AWS). In the quarter ended March 31, 2023, mortgage lending was the biggest contributor to the firm’s total revenue of Rs. 871 crore.
JM Financial’s fundraising comes as credit funding is fast becoming a viable alternative to equity funding amid the prolonged funding winter. Consequently, many other India-focused venture debt firms such as BlackSoil, Edelweiss Wealth Management, Alteria Capital, Vivriti Asset Management, and Anicut Capital have also launched new vehicles in the past few months.