Aditya Birla Sun Life AMC has received commitments of over ₹500 crore, including co-investments through the first-of-its-kind Money Manager Fund, a Category II Alternative Investment Fund (AIF).
The Aditya Birla Sun Life Money Manager Fund plans to raise ₹1,250 crore with a greenshoe option of ₹1,250 crore. It has achieved the first close with a commitment of ₹500 crore.
The Fund will provide private credit to promoters for acquisitions and business expansion based on their balance sheet.
Capex-led demand
A Balasubramanian, Managing Director and Chief Executive Officer, Aditya Birla Sun Life AMC said India on the cusp of capex boom which is expected to drive the next leg of credit offtake.
The private credit extended to borrowers will be fully secured and priced appropriately at 14-16 per cent.
“The fund will have strict covenants and the attempt through the fund is not to bring down the lending cost for the borrowers but to provide funding at the right price,” he said.
Investors can expect a return of 13-16 per cent, he added.
Capital market regulator SEBI has mandated large corporates to raise 25 per cent of their funding requirements through corporate bonds to deepen the market.