RV Capital's maiden India Credit 'Plus' fund completes first close and makes initial investments
~ RV Capital launches its maiden India Performing Credit fund of ₹400 crores with equal-size green-shoe option in June 2023; hits First Close ~
~ Shyamal Karmakar appointed as India Head and Chief Investment Officer of RV Capital India ~
MUMBAI, India, Oct. 18, 2023 /PRNewswire/ — RV CAPITAL INDIA ADVISORY PVT. LTD, a subsidiary of Singapore-based alternative investment manager – RV Capital Management Pvt. Ltd., has officially announced the launch of India operations and completed its first close on its maiden India Credit fund – ‘RV Capital India Credit Plus Fund’, with a target size of ₹400 crores, with a green-shoe option of ₹400 crores from a mix of domestic and offshore investors.
As of date, the fund has received a quarter of its ₹400 crore target in commitments and expects to raise half of the targeted amount by the end of the year. The fund has already made some high-quality investments – first, a holding company of a large Indian conglomerate backed by a strong collateral package and de-leveraging roadmap, and second, a solar renewable energy solutions platform with marque investors holding a majority, controlling stake.
RV Capital is looking at sector-agnostic deals and the sizes will range from ₹20 crores to ₹50 crores, and larger in case of co-invest with other investors or through offshore participation. It will primarily focus on investing in performing private credit across manufacturing, industrial, and services sectors, including holding companies and special purpose vehicles, subject to robust, marketable collateral structure, strong visibility on exit, or backed by marquee promoter groups/investors.
The fund can also opportunistically invest a part of the portfolio in price-dislocated listed bonds and high-grade bonds based on RV Capital’s high-conviction macro views. The fund is poised to make another close shortly and its next investment by November 2023. The fund is currently generating gross returns higher than its target of 14-16%.
Upon the launch of its India office and his appointment as India Head and Chief Investment Officer, Mr. Shyamal Karmakar of RV Capital India, stated, “As a global entity, we have observed a clear upward trend in the market’s appetite for alternative financing options and an increasing number of private credit deals that are more attractively priced in terms of risk-adjusted returns. This encouraged us to establish our India presence to address the demand-supply gaps that have emerged due to several structural changes in the Indian credit markets over the last few years. Instead of launching an India Credit Fund offshore, we opted to introduce an onshore India Credit “Plus” AIF fund capable of catering to the alternative investment appetite of HNIs, UNHIs, Family Offices, as well as select institutional Investors, under their debt allocations. The genesis of “Plus” in the Fund’s name is from the listed bonds which have the potential to generate similar returns as private credit and help to optimize risk-adjusted returns.”
As part of their future plans, RV Capital India aims to make investments that may involve structures backed by the security of shares or other assets deemed valuable to the promoters or companies. These investments may take the form of financing for strategic acquisitions, stake buyouts of strategic partners or private equity investors, last-mile financing, and event-based operating company financing.
Focusing on tapping into the mid-market corporate financing sector in the country, Mr. Ranodeb Roy, Co-founder, and Chief Investment Officer of RV Capital Management Pvt. Ltd., said, “RV Capital Management currently manages 5 funds and has assets of USD 1bn+ under management. Since 2012, RV Capital Management has been investing in Asian Fixed Income, including Indian credits and this has been typically in USD-denominated bonds issued by Indian companies offshore. We now believe that it is the right time to bring our global expertise and reputation as macro investors are entering into the Indian market, which is showing significant momentum. The Private Credit space, in particular, is attractive to investors, both domestically and internationally.“
RV Capital India Credit Plus Fund, categorized as a Category II AIF, primarily focuses on Private Credit, constituting approximately 51% to 80% of the portfolio. The fund obtained SEBI approval in February 2023 and was launched in June 2023. The fund will be managed by RV Capital’s India subsidiary – RV Capital Advisory India Private Ltd.
RV Capital’s Asia funds’ list of India investments is long and includes many of the Indian credits which trade offshore (subject to management quality, corporate governance and ESG considerations), at some point or other, depending on relative value offered and price dislocations (if any) in the market.
About RV Capital Management:
RV Capital Management is a Singapore-based alternative investment manager founded in 2011. We focus on long/short investments in the interest rates, foreign exchange and credit markets in Asia. These investments are driven by economic, secular and structural themes. Our culture is rooted in top-down macro research of Asian economies framed within the context of price dislocations resulting from drivers outside Asia. We emphasize strong risk discipline and seek to employ liquid instruments while being mindful of market technicals.
About Shyamal Karmakar, India Head & Chief Investment Officer, RV CAPITAL India Advisory Pvt. Ltd: Shyamal Karmakar is a highly experienced professional in the fields of credit, lending, structured finance, and fixed-income trading who is currently holding the position of India Head and Chief Investment Officer at RV Capital India Advisory Pvt. Ltd., the Indian subsidiary of RV Capital Management Pvt. Ltd. With over 26 years of experience in various financial roles, Mr. Karmakar’s expertise encompasses a wide range of financial institutions, including mutual funds, merchant banks, non-banking financial companies (NBFCs), and corporate and treasury banking within banks.
Previously, he served as the Executive Vice President of the Global Markets Group at IndusInd Bank. During his tenure, he established and led the Credit and Rates Trading and Equity Investments vertical. He also played a pivotal role in launching and spearheading the Structured Finance and Credit business at Morgan Stanley India, where he served on the board of the NBFC entity.
Shyamal Karmakar has held senior positions in the Structured Credit teams at DSP Merrill Lynch and Rabo India Finance, underscoring his expertise in Private Credit. He has successfully led the origination, structuring, and execution of numerous Private Credit and Structured Finance transactions. He also possesses extensive experience in investment and trading of large volumes of primary and secondary bonds/debentures.
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