Modulus Alternatives exits maiden private credit Fund 

Modulus Alternatives has deployed over INR 2,500 crore across 21 investments.

Domestic private credit platform Modulus Alternatives Investment Managers backed by the Centrum group has exited its maiden private credit fund, delivering a gross internal rate of return (IRR) of more than 17 % to investors, the company told Moneycontrol 

The Centrum Credit Opportunities Fund, was launched in 2019 as a closed-ended Category II Alternative Investment Fund (AIF) and had deployed Rs 1,790 crore across 15 investments spanning sectors such as healthcare, pharmaceuticals, consumer durables, specialty chemicals, and industrials. The portfolio focused on senior secured operating company exposures with regular coupon-bearing investments. Nearly 45% of exits were achieved through improved operational cash flows, while 30% resulted from equity raises, and the remainder through refinancing, the company said.

“Despite market volatility, including the NBFC crisis and the COVID-19 pandemic, the fund consistently delivered mid-teen returns while maintaining high credit quality. At maturity, the median investor IRR (pre-tax, post-expenses) stood at 14.28%. The fund’s Distributed to Paid-In Capital (DPI) ratio was 1.50x, while its Total Value to Paid-In Capital (TVPI) reached 1.52x” the company said in a statement.

Alok Agarwal, shareholder and director at Modulus Alternatives, attributed the fund’s success to a seasoned investment team and an experienced investment committee. “Building on this achievement, we are now raising funds for Fund II, which will follow the same strategy,” he said.

Jaspal Bindra, executive chairman of Centrum Group, highlighted the growing significance of private credit in India’s financial ecosystem. “This success is a testament to the increasing role of private credit in driving innovation and expansion across industries,” he said, thanking investors for their trust in the fund.

“The successful maturity and exit of Fund I highlight our ability to navigate volatile markets. Thirteen of the 15 investments exited ahead of schedule, reinforcing our commitment to value creation,” said Rakshat Kapoor, head of private credit and CIO at Modulus Alternatives, He also noted that portfolio companies saw improvements in operating profiles, profitability, and credit ratings post-investment.

Modulus Alternatives has since launched India Credit Opportunities Fund II (ICOF II), focusing on performing private credit in sectors with strong growth potential, such as healthcare, pharmaceuticals, industrials, and clean energy. The fund, set to mature in August 2029, has so far deployed over INR 800 crore across six investments, the company said.

Since its inception in 2018, Modulus Alternatives has deployed over Rs 2,500 crore across 21 investments. The firm is backed by Centrum Group and Alok Agarwal, former CFO of Reliance Industries. Its board is chaired by Vinod Rai, former finance secretary and Comptroller and Auditor General (CAG) of India, with independent director Raman Uberoi, a senior advisor at CRISIL and a member of SEBI’s Market Data Advisory Committee, providing additional governance oversight.