Mumbai, Mar 1 (PTI) Vivriti Asset Management, an alternative investment fund specialising in extending credit to unrated companies, is eyeing to grow assets under its management to USD 3 billion over the next three years as it plans to launch more debt funds to widen its reach as well as investor base.
An arm of the Chennai-based Vivriti Group, Vivriti Asset Management is a fixed income asset manager that builds debt funds regulated by the Sebi under alternate investment funds.
Its five funds have an AUM of about Rs 1,800 crore and it plans to grow this to around USD 3 billion (around Rs 22,700 crore) over the next three years, founder and chief executive Vineet Sukumar told PTI.
Vivriti has invested in about 350 companies — all unrated ones with around revenue of Rs 250 crore or more. Its last fund has a live AUM of Rs 1,300 crore and has a commitment of Rs 2,000 crore.
Sukumar said of the total investment only 0.25 per cent are stressed investments which started after the fall of IL&FS.
There is lot of value in the mid-market space where there are over 40,000 high-quality companies which find it difficult to get institutional funding.
“Over the years we’ve lent to over 350 unrated companies across 30 sectors. In fact, we support only to unrated entities based solely on our own internal ratings. We charge 11 to 15 per cent depending on the tenor and the nature of the collateral,” he said.
It extends typically Rs 30-40 crore to each company and is sitting over Rs 2,000 crore of funding commitment, of which only Rs 1,300 crore have been drawn down, he said.
The Vivriti group as a whole has an AUM of Rs 4,500 crore of which the NBFC arm has around Rs 3,200 crore in AUM, Sukumar said, adding the fund offers 9.5-16 per cent returns to his investors who are domestic and global institutions like insurers, bank treasuries, large corporate treasuries, foundations, family offices, asset managers and HNIs.
Sukumar said over the past three years, the company has doubled its headcount to 130 and assets but trebled profit every year. Its profit rose from Rs 10 crore to Rs 30 crore in the past two years and is on course to touch Rs 80 crore this fiscal on a likely revenue of Rs 250 crore. PTI BEN MR
