Modulus Alternatives Announces final close of Rs 700 crore India Credit Opportunities Fund II

Founded in 2018, Modulus Alternatives is among the early entrants in India’s private credit space.

Alternative asset manager Modulus Alternatives has announced the final close of its India Credit Opportunities Fund II (ICOF II) with commitments exceeding Rs 700 crore, sources aware of the development have told Moneycontrol.

The close saw participation from family offices, institutions, high-net-worth individuals (HNIs) and ultra-HNIs, signalling continued investor appetite for private credit strategies in India, said people cited above.

Backed by the Centrum Group and Alok Agarwal, former Chief Financial Officer of Reliance Industries, ICOF II is focused on performing private credit opportunities in mid-market businesses. Since inception, the fund has invested in 11 companies, deploying over Rs 1,156 crore (including co-investments), across sectors such as pharmaceuticals, energy, financial services, auto ancillary and healthcare.

The ICOF II fund has already started returning capital to investors, distributing consistent quarterly income at an annualised cash distribution rate of 10 percent (including TDS), having so far returned more than Rs 43 crore. It has also been assigned the CARE AIF 1 grading by CareEdge Analytics & Advisory, the highest rating given to alternative investment funds.

Across its two funds, Modulus Alternatives has deployed Rs 2,946 crore across 26 transactions, successfully exiting 16 of them and cumulatively returning over Rs 1,690 crore. Earlier this year in January, the Centrum Credit Opportunities Fund (CCOF), its maiden vehicle, completed full exit, delivering a gross internal rate of return of over 17 percent.

Founded in 2018, Modulus Alternatives is among the early entrants in India’s private credit space. Its board is chaired by Vinod Rai, former Finance Secretary and Comptroller and Auditor General of India. Other members include Raman Uberoi, independent director and senior advisor at CRISIL, who also serves on the Securities and Exchange Board of India’s Market Data Advisory Committee.