PE firm True North forays into private credit, raises Rs 1,000 Cr fund

Homegrown private equity fund True North on Monday announced a foray into private credit, joining a slew of other entities which have started dabbling in this space.

The firm said it had set up a fund in 2022, and has already raised over Rs 1,000 crore. It intends to close the fund by the end of the year, as per a statement.

The business christened "True North Private Credit" will build on the capabilities of the firm over the last two decades.

A favourable risk-reward equation and a good regulatory framework make private credit a robust business, the statement said.

The business will offer agile capital solutions to well-governed and profitable enterprises and deliver superior, risk-adjusted returns to its investors, it said.

The fund, which bridges the supply-demand gaps for middle-market companies, will invest Rs 75 crore by itself into companies and Rs 200 crore along with its co-investment pools, as per the statement.

It targets an internal rate of returns between 15-18%.

Its managing partner Kapil Singhal said domestic institutions, family offices, high-net-worth individuals and wealth partners have supported the fund.