New Delhi, Sept. 1 -- Private credit investor Modulus Alternatives has completed the final close of its second India Credit Opportunities Fund (ICOF II).
The fund, which will focus on performing private credit opportunities across India, has received commitments exceeding Rs 700 crore ($79.5 million), Modulus said in a press note on Monday.
Modulus Alternatives is backed by the Centrum Group and Alok Agarwal, former CFO of Reliance Industries.
ICOF II is the second fund in the series that provides growth and refinancing capital to mid-market businesses in India. So far, the fund has invested in 11 companies, deploying over Rs 1,156 crore across sectors like pharmaceuticals, energy, financial services, auto ancillary, and healthcare.
The fund has delivered consistent quarterly income, generating an annualized cash income distribution rate (including TDS) of 10%, and has already returned more than Rs 43 crore to investors.
In January, VCCircle reported that Modulus fully exited its maiden performing credit fund that was launched five years ago. The Centrum Credit Opportunities Fund was launched in September 2019 with a target corpus of Rs 500 crore and a greenshoe option of Rs 250 crore, and had a five-year tenor.
Broadly, Modulus deployed Rs 1,790 crore from the vehicle, which included around Rs 1,070 crore as co-investments for limited partners' managed accounts. The fund achieved a gross Internal rate of return (IRR) of over 17%.
The second fund, with a target corpus of Rs 750 crore and a greenshoe option of Rs 500 crore, is expected to help Modulus grow its assets under management to $500 million.
Across both funds, Modulus has deployed Rs 2,946 crore, and cumulatively returned over Rs 1,690 crore to investors.
Published by HT Digital Content Services with permission from VC Circle.