Alteria Capital, which provides venture debt capital to start-ups, has launched its third fund with a first close of Rs 1,000 crore, the Economic Times reported.
The organisation announced that the total corpus of the fund is Rs 2,000 crore. Of this, it has included Rs 1,000 crore as a greenshoe option. According to Moneycontrol, this is the highest amount of venture debt funds raised in India.
The organisation, however, did not mention the details of the limited partners (LPs). It stated that LPs were a set of indigenous investors and high-net-worth individuals ( HNIS).
“We have returned about 1x of our previous two funds to our investors and we need another pool of capital to deploy. We are also targeting 18 percent returns to our investors with this new fund (pre-tax, post-expenses),” Vinod Murali, Co-founder of Alteria Capital told Moneycontrol.
Founded in 2018 by Vinod Murali and Ajay Hattangdi, Alteria Capital has invested in 45 companies as the lead investor. It can be noted that exactly one year ago the organisation closed its second fund at Rs 1,820 crore.
With start-ups witness a decline in equity-based capital, debt capital is filling the vacuum slowly. Multiple institutions are currently looking to raise debt funds in order to boost themselves.
“While there’s a demand for venture debt, we do not see the market doubling or tripling. It will still be linear growth, even as equity investments degrow this year,” Murali told The Economic Times.