New Delhi, Jan. 20 -- Private credit investor Modulus Alternatives has rolled out its third performing private credit fund with a target corpus of Rs 2,000 crore ($220 million), including a greenshoe option of Rs 1,000 crore.
The Modulus Credit Opportunities Fund III (MCOF III) will invest in performing private credit across sectors like chemicals, healthcare, pharmaceuticals and APIs, industrials, clean energy, EV mobility, financial services, and auto ancillaries.
The fund is targeting a gross internal rate of return of over 16% per annum. The tenor of the fund is five years from first close, Modulus said in a press note.
"With two successful private credit funds behind us, we are now focused on scaling the platform with the same discipline and precision that built our foundation," Alok Agarwal, equity partner, Modulus Alternatives, said in the note.
"Our aim is to expand thoughtfully-strengthening origination, deepening credit frameworks, and building a business designed for long term performance and relevance," he added.
The launch of the third fund comes around four months after Modulus completed the final close of its second credit opportunities fund. So far, this fund has already deployed over Rs 1,400 crore.
Across its private credit platform, fund I and fund II have collectively deployed over Rs 3,150 crore across 29 transactions. It has successfully exited 18 investments and cumulatively returned over Rs 1,900 crore to investors. The maiden fund, Centrum Credit Opportunities Fund I, achieved a gross IRR of over 17% upon complete exit in 2024.
Established in 2018, Modulus Alternatives is backed by the Centrum Group and Alok Agarwal, who is the former chief financial officer of Reliance Industries. The firm provides senior-secured financing to investment-grade businesses across various sectors.
Published by HT Digital Content Services with permission from VC Circle.