Investment Strategy

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The SC Credit Fund is a private credit fund that seeks to achieve a balance of capital protection and yield by providing credit solutions to the underserved mid-market companies in India.

Key Fund Highlights:

  • Initial Closing announced in December 2017 of US$ 50 million
  • Final Closing target of US$150 million expected by end of 2018
  • Fund term of 5 years from the date of the Final Closing with an Investment Period of 2 years
  • Flexibility to raise both onshore capital (via SEBI-licensed Alternative Investment Fund -Category 2) and offshore capital (via the Mauritius feeder vehicle)
  • Primary geographical focus is India.

Portfolio characteristics

  • Portfolio of secured instruments having contracted fixed yield (combination of cash coupons payable at regular intervals and redemption premium) and equity upside participation.
  • Investments secured by
    • Real assets such as real estate and fixed assets,
    • Controlling or material pledge over equity,
    • Cash flow escrow mechanisms,
    • Corporate / personal guarantees.