True North Ventures into Private Credit, Raises Over ₹1,000 Crore for New Fund
- ByStartupStory | November 27, 2023
True North, a homegrown private equity fund, has unveiled its entry into the realm of private credit, aligning with a growing trend in the financial landscape. The firm proudly declared the establishment of a fund in 2022, and to date, it has successfully garnered over ₹1,000 crore in capital. With aspirations to conclude the fund by the year-end, True North has introduced “True North Private Credit,” a venture poised to leverage the firm’s accumulated expertise spanning two decades.
According to a statement, the firm cited a favorable risk-reward equation and a well-defined regulatory framework as catalysts propelling the private credit initiative. “A favourable risk-reward equation and a good regulatory framework make private credit a robust business,” the statement affirmed. The business, grounded in the principles cultivated by True North over the years, aims to provide agile capital solutions to well-governed and profitable enterprises, ensuring risk-adjusted returns for its investors.
The fund, designed to address supply-demand gaps for middle-market companies, commits ₹75 crore for direct investments into enterprises. Additionally, it plans to contribute ₹200 crore in collaboration with its co-investment pools, according to the statement. True North has set ambitious targets, eyeing internal rate of returns in the range of 15-18 per cent.
Kapil Singhal, the managing partner of the company, expressed gratitude for the robust support received from domestic institutions, family offices, high-net-worth individuals, and wealth partners. Their backing has been instrumental in propelling True North’s venture into private credit, signaling confidence in the firm’s capabilities and the envisioned success of the newly established fund.
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