PE firm True North forays into private credit, raises Rs 1,000 crore fund

The business christened "True North Private Credit" will build on the capabilities by the firm over the last two decades. A favourable risk-reward equation and a good regulatory framework make private credit a robust business, the statement said.

The fund, which bridges the supply-demand gaps for middle-market companies, will invest Rs 75 crore by itself into companies. Image Courtesy: Freepik.

Homegrown private equity fund True North on Monday announced a foray into private credit, joining a slew of other entities which have started dabbling in this space.

The firm said it had set up a fund in 2022, and has already raised over Rs 1,000 crore. It intends to close the fund by the end of the year, as per a statement.

The business christened "True North Private Credit" will build on the capabilities by the firm over the last two decades. A favourable risk-reward equation and a good regulatory framework make private credit a robust business, the statement said.

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The business will offer agile capital solutions to well-governed and profitable enterprises and deliver superior, risk-adjusted returns to its investors, it said.

The fund, which bridges the supply-demand gaps for middle-market companies, will invest Rs 75 crore by itself into companies and Rs 200 crore along with its co-investment pools, as per the statement.

It is targeting an internal rate of returns between 15-18 per cent. Its managing partner Kapil Singhal said domestic institutions, family offices, high-net-worth individuals and wealth partners have supported the fund.

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