Overview

Credit has emerged as the most compelling asset class to invest in India, offering consistent equity-like returns on a fully secured basis and having only recently become meaningfully accessible to foreign investors. Over the past 2 years our seasoned India Credit team has successfully established itself as an early mover in the under-penetrated, large and rapidly-evolving Indian Credit Market.

The Samena India Credit Fund has now established a 2+ year track record since its launch in November 2013, with US$45 million of seed capital from Samena Capital and its partners. Our entry into the domestic India credit space was based on the premise that the US$280+ billion Indian corporate bond market growing at c.18% pa would imply that Indian corporate credits can offer a superior risk-adjusted return, yielding equity-like returns on a fully secured basis to international investors.

Since inception, the Fund has delivered consistent absolute and relative returns in excess of its benchmarks, despite volatile market conditions. The Fund continues to see a strong pipeline of credit opportunities primarily due to the large and under-served Indian mid-market corporate segment and also the tight monetary conditions in the Indian market.

We are pleased to have now developed a seasoned, on-the-ground team that has demonstrated excellent origination capabilities and has built a robust portfolio of credits. As we continue to see a large, high quality pipeline of Indian local corporate credits, we have initiated a direct co-investment strategy where we are inviting our Limited Partners and a select group of global institutions to co-invest alongside Samena Capital. This direct co-investment strategy will complement our existing India Credit Fund as we leverage our investment and operating infrastructure in Mumbai, Dubai and Hong Kong.

Fund Summary

  • Open-ended, total return fund focused on achieving superior risk-adjusted returns
  • Investing in secured corporate credit opportunities in India
  • Launched in November 2013 with institutional capital of US$45 million
  • Invested ~US$70 million of capital since end-2013
  • Diversified exposure across sectors: microfinance, education, financial services and real estate, representing the under-lying secular growth in India