Avendus Third Credit Fund Achieves Major Milestone with Over Rs 2,200 Crore in Commitments
In a significant development in the financial services sector, Avendus has successfully secured commitments exceeding Rs 2,200 crore for its third fund under its credit strategy. This achievement marks a substantial step forward for the firm's private credit initiatives, reflecting strong investor confidence in the asset class.
Rapid Fundraising and Strategic Growth
The fund reached its first close in April 2025 with commitments of nearly Rs 1,000 crore, demonstrating initial momentum. Impressively, it achieved its base fund size within just eight months of that first close, highlighting efficient fundraising execution. The third fund is now targeting a total corpus of Rs 4,000 crore, which includes a greenshoe option of Rs 2,000 crore. This represents a notable scale-up from its predecessor fund, which had a size of approximately Rs 1,000 crore.
Enhanced Investor Participation and Deployment
Investor dynamics have evolved significantly with this fund. Average commitment sizes have increased to about Rs 10 crore, up from Rs 4 crore in the earlier fund, with some commitments even exceeding Rs 100 crore. Avendus reported on Monday that the fund has attracted a robust base of high-net-worth individuals (HNIs) and institutional investors, underscoring broad-based support.
Already, the fund has deployed over Rs 1,200 crore, which accounts for nearly 60% of the committed capital. This capital has been allocated across diverse sectors and business models, indicating a strategic and active investment approach.
Executive Insights and Future Outlook
Anshul Jain, executive director at Avendus Structured Credit Fund, commented on the fund's progress. "Investor commitment continues to scale, driven by larger ticket sizes and sustained participation from existing investors, reflecting growing recognition of private credit as a resilient asset class," he stated. Jain added, "With typical deal sizes of Rs 200–500 crore, alongside co-investment opportunities, we remain focused on partnering with high-quality corporates through flexible, secured credit solutions."
This development positions Avendus as a key player in the private credit market, leveraging increased investor appetite for alternative investments. The fund's growth trajectory and deployment strategy suggest a positive outlook for corporate financing in India's evolving economic landscape.
