· SIDBI anchors a Category II Alternate Investment Fund managed by Vivriti Asset Management
· The Fund would channel debt capital to microenterprises and women-centric businesses, and help build bond markets for lower-rated issuers
Towards building an ecosystem to support Micro, Small and Medium Enterprises (MSMEs), SIDBI has participated as an anchor investor in Promising Lenders Fund (PLF) managed by Vivriti Asset Management (VAM), with an aggregate target corpus of INR 700 crores in two phases. The Fund was co-conceptualised by SIDBI and Vivriti with dual objectives of providing necessary debt capital to microenterprises and building bond markets for issuers rated BBB and lower category. The fund is envisaged to benefit over 8,000 microenterprises and 80,000 women entrepreneurs.
The first phase of the fund – PLF-I, with fund size INR 300 crore – went live in March 2022, and was fully invested by October 2022. The fund has made 18 investments in 16 MFIs/ NBFCs and Fintechs rated BBB and lower category, and through it extended capital to 8,500 microenterprises and 43,000+ women entrepreneurs. The fund has returned ~25% of capital as of June-2023 to contributors.
The second phase of the fund – PLF-II, with target fund size of INR 400 cr – went live in March 2023, and is expected to announce final close by December 2023. The fund is expected to make 20 – 25 investments in MFIs/ NBFCs and Fintechs rated in below BBB or lower category, and through it will extend financial support to 4,000 microenterprises and 40,000 women entrepreneurs.
Speaking about the development, Shri S Ramann, Chairman and Managing Director at SIDBI, said “As part of its developmental role in nurturing microenterprises in India, SIDBI continues to encourage innovation that helps channel much needed financial support to the segment. Towards this we are pleased to announce our anchor investment in Promising Lenders Fund managed by Vivriti Asset Management. The initiative benefits presently lower rated MFIs/ NBFCs and Fintechs and provides them opportunities to tap debt funds under AIF route. The Fund Manager’s expertise in investing in Indian enterprise debt, and demonstrated ability to originate assets, manage risk in the portfolio, and deliver outcomes helps the initiative. Deepening Indian bond markets has been a priority, and SIDBI hopes to further that cause through this investment.”
Shri Vineet Sukumar, CEO, Vivriti Asset Management said “We share SIDBI’s vision of channelling debt capital to microenterprise which are essential cogs of our economy, and building capital markets access for lower-rated non-banking financial enterprises. As an asset management firm, we also believe that bringing more enterprises to the fore provides capital markets – domestic and global – an opportunity to diversify their portfolios, with an impactful yet commercially rewarding investment.”.