Private equity firm Aditya Birla Sun Life AMC successfully secures 700 crore rupees through Alternative Investment Fund (AIF).
Aditya Birla Sun Life Asset Management Company (ABSL AMC) has entered the structured credit investments market with the launch of its Structured Opportunities Fund - Series II. This fund, focused on structured credit investments in mid-to-large corporates, particularly in asset-heavy sectors, aims to generate a mid-teens Internal Rate of Return (IRR) by investing in credit opportunities that offer attractive risk-adjusted returns.
The investment strategy of ABSL Structured Opportunities Fund - Series II is to deploy capital in structured credit instruments for mid-to-large asset-heavy corporates. The fund has a target to raise a total of ₹2,500 crore, with a greenshoe option of an additional ₹1,250 crore. So far, it has raised ₹700 crore at its first close.
The fund's focus is on performing credit opportunities and offers bespoke capital solutions across growth, strategic, and opportunistic requirements. It primarily invests in mid-to-large corporates in asset-heavy sectors like manufacturing, infrastructure, and industrials. The investments have strong collateral and cash flow profiles, aligning with the fund's 4C investment philosophy.
The fund utilizes flexible drawdown structures to navigate market volatility. It seeks to build a diversified portfolio of 10-12 investments. The fund's investments are not disclosed in the current context, but it has already deployed part of its committed capital across opportunities in sectors such as chemicals, auto, and financials.
Amit Kansal, Head Alternate Investments - Fixed Income at Aditya Birla Sun Life AMC, manages the fund. A Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC, expressed confidence in the fund's ability to unlock meaningful value while supporting the next wave of corporate growth.
The fund has garnered strong traction across a broad investor base including institutional investors, High Net Worth Individuals (HNIs), Ultra High Net Worth Individuals (UHNIs), and family offices. This marks a significant step for ABSL AMC as it ventures into structured credit investments with a focus on private credit strategies that emphasize risk mitigation and attractive returns through tailored credit instruments.
- The Structured Opportunities Fund - Series II, managed by Amit Kansal at Aditya Birla Sun Life AMC, focuses on structured credit investments in mid-to-large asset-heavy sectors like manufacturing, infrastructure, and industrials.
- The fund aims to generate a mid-teens Internal Rate of Return (IRR) by investing in credit opportunities that offer attractive risk-adjusted returns within the business and economy.
- To achieve its objective, the fund deploys capital in structured credit instruments and seeks trading opportunities in various markets, including stocks, using its flexible drawdown structures to navigate market volatility.
- Infrastructure development and investment in mid-to-large corporates are crucial components of this fund's strategy, with a focus on performing credit opportunities that provide strong collateral and cash flow profiles.
- The fund has already attracted strong traction from a diverse group of investors, including institutional investors, High Net Worth Individuals (HNIs), Ultra High Net Worth Individuals (UHNIs), and family offices, as it promises to unlock meaningful value and support the next wave of corporate growth.
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