KYI: Know Your Investment

What do Private Credit Funds do?

Private Credit Funds are investment vehicles that
specialize in providing debt financing to companies
outside of traditional banking channels. These funds
often target mid-sized companies, offering various debt
structures such as direct loans, mezzanine financing,
distressed debt, and more.

Why Invest in Private Credit Funds?

Investing in Private Credit Funds can offer higher yields
compared to traditional fixed-income investments, with the
added benefit of diversifying credit exposure. These funds
play a critical role in financing businesses, often
accompanied by detailed covenants and security provisions
that provide layers of protection for investors.

What makes Private Credit an Attractive Investment?

Key drivers of the private credit boom in India include:

Funding Winter

  • A sharp decline in startup investment, with a 70% drop in the first half of 2023,is prompting startup founders to explore alternative capital sources like private credit.

Texation Law Changes

  • Removal of long-term tax benefits on dets instruments is deriving affluent investors,including HNIs and family offices, towards private credit investments, offering improved returns while diversifying protfolios.

Yield-Seeking Investors

  • Investors seeking higher yields are turning to private credit as opportunities in distressed assets diminsih due to RBI's measures to reduce NPAs.

Decreasing NPA and Credit Growth

  • The GNPA ratio for both scheduled commerical bank and NBFCs is declining, instilling investors confidence and fueling private credit investment amid overall credit growth in India.

  • The alternate debt market in India is estimated to be around $90 billion as of 2022 (BCG, McKinsey reports).
  • The alternate debt market is projected to reach $140-150 billion by 2025, representing a growth of over 50% in 3 years (McKinsey, BCG).
  • By 2030, the alternate debt market could surpass $250 billion as per Avendus Capital estimates.
  • Over last 5 years, India attracted the largest private credit investment volume ~$9.5 bn of all Asian Markets. (Source: GPCA)
  • India has seen ~5 Lakh Cr of Capital Commitment in AIF Category 2 out of which ~2.5 Lakh Cr is already deployed in Private Credit Strategies. (Source: SEBI)
  • In the last five years, the private credit market has evolved exponentially in volume and numbers. The size of category II AIF market (of which private credit funds are a key component) has reached ₹6.96 trillion, up by around 24% on a year-on-year basis. (Source: Mint)

Open Investments

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Minimum Investment:

₹ 25,00,000

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Minimum Investment:

₹ 25,00,000

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Minimum Investment:

₹ 25,00,000

Investments for Resale

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Net Asset Value:

₹ 28,00,000

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Fully Funded

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Net Asset Value:

₹ 28,00,000

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Prestige Tech Platina

Bangalore

Location:

Seawoods, Navi Mumbai

Pre-Tax IRR:

14.00%

Discount to NAV:

3%

Office No. 106A, B-Wing Kanakia Wall Street,
Andheri - Kurla Rd, Chakala, Andheri East,
Mumbai, Maharashtra - 400093

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