JM Financial achieves a Rs 600 crore close for its inaugural credit fund

4 Jul 2023 , 10:46 AM

According to a senior official who spoke to ET, financial services company JM Financial has reached the first closure of its first performing credit fund, JM Credit Opportunities Fund – 1, raising over Rs 600 crore in commitment from domestic HNIs and family offices.

‘This will be our primary credit approach. The total contribution exceeds Rs 600 crores when co-investments are included. Anuj Kapoor, managing director & CEO, JM Financial’s Private Wealth and Alternates Asset Management, stated to ET, ‘We will be aiming to deploy the full amount within this quarter.

JM hopes to raise up to Rs 1,500 crore for the fund’s final closing, including co-investments. As a sponsor pledge to the fund, the group has contributed 10% of the capital.

After receiving SEBI clearance in January 2023, the JM Credit Fund was introduced in March 2023. Pranob Gupta will oversee the credit fund.

We have been engaged in structured financing for more than 20 years through our NBFC, and we have a very excellent track record in this area.

‘We are looking to lend for situations where banks can’t lend, such as domestic acquisitions or partner buyouts,’ continued Kapoor.

The fund will not make any real estate or distressed scenario investments. The fund seeks returns in the mid- to high teens.

JM is considering deals with values ranging from 200–300 crores to 500 crores and above. ‘We’ll try to spread a few copies of this paper. Individual fund investments would range from Rs50 to Rs100 crore, but we’ll also execute bigger deals and disperse the remaining paper, according to Kapoor.

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