Avendus Group has raised over ₹2,200 crore in commitments for its third structured credit vehicle, triggering a greenshoe option and marking a significant scale-up in its private credit strategy.
Avendus Structured Credit Fund III (ASCF III), the firm’s third high-yield performing credit fund, achieved its first close in April 2025 at around ₹1,000 crore and reached its base size within eight months.
The fund is targeting a total corpus of ₹4,000 crore, including a ₹2,000 crore greenshoe option — four times the size of its predecessor, ASCF II, which had a corpus of about ₹1,000 crore.
The latest fundraise reflects rising investor appetite for private credit, with average commitment sizes increasing to roughly ₹10 crore from ₹4 crore in the previous fund. The vehicle has also secured multiple commitments exceeding ₹100 crore, drawing participation from high net-worth individuals and institutional investors.
ASCF III has already deployed more than ₹1,200 crore — about 60 per cent of committed capital — across sectors such as pharma, healthcare, manufacturing, consumer, chemicals, technology and B2B services. The fund is currently tracking a gross internal rate of return (IRR) of 18 per cent, in line with its earlier funds, which delivered portfolio-level gross IRRs of around 18%.
Avendus executives said the firm has completed over 100 high-yield credit deals over the past 15 years, with aggregate transaction value exceeding ₹15,000 crore.
“With typical deal sizes of ₹200–500 crore, alongside co-investment opportunities, we remain focused on partnering with high-quality corporates through flexible, secured credit solutions,” said Anshul Jain, Executive Director, Avendus Structured Credit Fund
Avendus expects India’s private credit market to continue expanding, with industry deployments nearing $15 billion in calendar year 2025 and assets under management estimated at $25–30 billion, as institutional participation deepens and demand for flexible capital rises across mid-market and sponsor-led transactions.
Published on February 23, 2026