New Delhi, Feb. 24 -- Avendus PE Investment Advisors, the asset management arm of Avendus Group, has secured commitments of over Rs 2,200 crore (around $242 million) for its third structured credit vehicle, Avendus Structured Credit Fund III, triggering the greenshoe option as fundraising momentum gathers pace.

The third fund, which follows the firm's high-yield performing credit strategy, achieved its first close in April 2025 with commitments of around Rs 1,000 crore and reached its base size within eight months.

The vehicle is targeting a total corpus of Rs 4,000 crore, including a greenshoe option of Rs 2,000 crore, marking a significant scale-up from Avendus Structured Credit Fund II, which had a corpus of about Rs 1,000 crore and invested in 14 companies.

Avendus' first credit fund had raised Rs 135 crore and deployed capital across nine transactions. The fund has returned the capital raised, with a gross internal rate of return (IRR) of 18%, according to the firm. The first two funds saw zero write-offs.

The average commitment by limited partners (LPs) to the third fund has increased to around Rs 10 crore from Rs 4 crore in the previous fund.

The investor base for the third fund includes high-net-worth individuals and institutional participants, reflecting sustained appetite for private credit opportunities. Avendus said multiple investors have committed more than Rs 100 crore each.

The fund has already deployed over Rs 1,200 crore, nearly 60% of the committed capital, across a diversified set of sectors and business models, the company said. The portfolio is currently tracking a gross IRR of 18%. The earlier two funds under the strategy also delivered gross portfolio-level IRRs of about 18%.

The third fund invests across sectors such as pharmaceuticals, healthcare, manufacturing, consumer, chemicals, technology and B2B services, structuring secured credit solutions that include promoter financing, acquisition financing and growth capital.

Typical deal sizes range between Rs 200 crore and Rs 500 crore, alongside co-investment opportunities.

Avendus Group, founded in 1999, operates across investment banking, institutional equities, wealth management, credit solutions and asset management, with a presence in India, the US and Singapore.

Published by HT Digital Content Services with permission from VC Circle.