High Yield Secured Debt Fund (Category II)

A 4-year close-ended Category II AIF which will invest in fully secured high yielding securities issued by Indian Real Estate developers/ companies predominantly in South India.

Mauritius feeder fund to pool monies from international investors.

Key Product Features

Instrument Structure
  • 100% of the deals to be debt focused with fixed returns from coupons and redemption premiums. Within this:
    1. ~75 - 80% of the portfolio to be focused on self-liquidating residential real estate projects
    2. ~20 - 25% of the portfolio may also participate in security backed special situations deals that could have commercial assets/ other physical collaterals
  • Typically 2 - 3 year deals; with amortising loans
  • Endeavour to create a diversified portfolio
  • Single company exposure limited to a maximum of 25% of the fund
  • A mix of transactions at various stages; the fund will largely focus on post approval projects and not take land stage risks unless backed by existing cash flows
  • Business cash flows are base case exit routes for loans i.e. non-capital markets correlated
Focused Product & Customer Strategy

Opportunistic high yield secured credit to:

  • Tier 2 & 3 developers predominantly in Chennai, Bangalore, Hyderabad & to a smaller extent, other select micro markets like Pune/ Mumbai for early stage working capital needs/ refinancing on-going projects backed by mortgage + cash flows

Medium yield secured credit to:

  • Tier 1 developers for corporate funding backed by cash flows
  • Select Tier 2 & 3 developers for construction finance and working capital purposes (i.e. relatively lower execution risks) backed by mortgage + cash flows

* Please read the Private Placement Memorandum and Fund documents carefully before making an investment.