PE firm True North forays into private credit, raises ₹1,000-crore fund

Homegrown private equity fund True North has 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 ₹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 risk-adjusted returns to its investors.

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

It is targeting an internal rate of returns between 15-18 per cent.

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

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