Modulus Alternatives Investment Managers Limited announced the launch of its third private credit fund on Monday, targeting a corpus of ₹2,000 crore, including a green-shoe option. The Modulus Credit Opportunities Fund III (MCOF III) will focus on performing private credit opportunities in India’s mid-market segment.
The fund, structured as a SEBI-registered Category II Alternative Investment Fund, has a tenure of five years from first close and targets a gross internal rate of return of approximately 16 per cent per annum. The investment strategy centers on senior-secured lending to mid-market companies across sectors including chemicals, healthcare, pharmaceuticals, industrials, clean energy, and auto ancillaries.
The Mumbai-based firm has built its track record on two previous funds that collectively deployed over ₹3,150 crore across 29 transactions. The company reported zero credit losses across its portfolio, with 18 successful exits returning over ₹1,900 crore to investors. Its maiden fund, Centrum Credit Opportunities Fund I, delivered a gross IRR exceeding 17 per cent upon complete exit in December 2024.
Alok Agarwal, Equity Partner at Modulus Alternatives, said the firm aims to scale the platform while maintaining its disciplined approach to credit underwriting and portfolio monitoring. Jaspal Bindra, Executive Chairman of Centrum Group, emphasised the firm’s focus on robust risk management and capital protection.
The fund launch comes as India’s mid-market companies face continued challenges in accessing traditional bank lending, creating demand for alternative credit solutions. Modulus positions the new fund as addressing this structural credit gap through diversified senior-secured lending backed by institutional-grade governance.
Established in 2018, Modulus Alternatives is backed by the Centrum Group and Alok Agarwal, former CFO of Reliance Industries Limited. The firm’s board is chaired by Vinod Rai, former Comptroller and Auditor General of India.