Bharat Credit Opportunities Fund I
Advisory Board
Mr. Rajnish Kumar
Ex. Chairman SBI
He has over four decades of banking experience, having risen to being the Chairman of SBI and is widely recognized for his expertise in corporate credit and project finance. He is a director at many prestigious institutions and corporates like HSBC Asia Pacific, L&T, Brookfield Property Management, Hero Motocorp and Chairs the Board of BharatPe and is a member of the Board of Governors of leading management institute – MDI, Gurgaon.
Mr. Sibi Antony
Ex. ED IDBI & Ex. MD Edelweiss ARC
He has over five decades of banking experience and was an Executive Director at IDBI Bank. He was the Executive Trustee of Stressed Assets Stabilization Fund (SASF). He was Instrumental in setting up the Distressed Assets Business in Edelweiss Group.
Mr. Nitin Bajpai
Ex. CIO Shinsei Bank Ltd. Japan
He currently serves as an Advisor to various financial firms including Livemore Capital U.K, and Hegemon Capital U.S.A. Prior to this Mr. Bajpai was a Senior Advisor to Shinsei Bank, Japan, where he also served for 5 years as Chief Investment Officer during his 17-year career with Shinsei Bank. Before joining Shinsei Bank in 2000, he was with Morgan Stanley Japan in the Special Situations Investment Group, and for Montgomery Asset Management’s Emerging Market Fund in San Francisco.
Investment Committee
Mr. Bhawani Shankar Rathi Representing Sumedha Fiscal Servcies Ltd.
Mr. Rathi, a Chartered Accountant and 3rd rank-holder in the ICAI Final Examination, as well as a national topper in ICAI’s MBF course, brings expertise in law, finance, and regulatory policies. As an Investment Committee member, he specializes in project finance, corporate debt restructuring, and business model development, driving strategic value in our AIF.
Mr. Sanjay Sachdev Representing Freedom Allianz Consultancy Pvt. Ltd.
Mr. Sanjay is a Senior Advisor to First Trust Portfolios for South & S. E. Asia since 2014. First Trust is the largest active ETF Asset Manager in the world. He is a Senior Advisor to APIS Partners, a $3.5 Billion Private Equity Impact Fund, since their inception in 2014. APIS is ranked as the best performing Emerging Markets Impact Fund in the world. He is also a Senior Advisor to Brandeis University for the social Impact Investments in India and Managing Director of Freedom Financial Services, an Investment Office in the US.
Mr. Nikhil Katariya, CEO of Urushya Fund Management LLP
Mr. Nikhil is a finance professional with over 30 years experience in Banking, NBFC and credit.He started his career with Citi Bank and later on joined Bank of America, India as Head of Cash Management. He was an Advisor to DMI Finance P Ltd for several years and has been involved in sourcing, executing and monitoring of several debt transactions over the last 30 years.
Investment Theme
A critical issue in
India’s credit market has been the burgeoning gap between the demand and supply of credit to Micro, Small and
Medium Enterprises (“MSMEs & SMEs”), estimated at approximately US$250 to 300b. Source: EY India @
100.
Attaining critical mass of an additional class of credit in the credit-starved Indian market will only
serve to broaden the possibilities and addressability of the credit market and accelerate credit delivery to
better meet the burgeoning requirement and bolster economic growth rates.
There is a very large group of
businesses who have never borrowed money and have no credit rating, but have good credit and do not have access
to debt.
There are a lot of new businesses who are cash flow positive and profitable and are raising equity
as they do not have access to debt.
Most lenders do not have the band width to do multiple small loans
(between Rs 70 mn and Rs 350 mn) and to monitor them and also perceive them as higher risks.
- To lend money to performing credit companies in the MSME sector, with a loan ticket size of between Rs 70 mn to Rs 350 mn
- Sector agnostic
- Focus on real economy companies
-
Adequate risk coverage
-
Visibility and coverage of cash flows
Investment Philosophy
The Fund aims to
generate superior return with focus on cash flows without compromising security and safety by investing in
Businesses which are not able to secure conventional credit funding at prevailing market rates owing to various
situations.
We aim to be the “better and safer alternative” for promoters looking for funding, by helping them retain
their equity.
Risk Management
Complete due diligence
extending beyond the tenor of the loan so as to minimize risk.
Founder: The philosophy of the founder and business operator have to
align with ours
Tenor: Maximum tenor of four years to eliminate long term risk
Cash Flow: Will lend only against visible cash flows which can
cover repayment of principal and interest. The loan should be able to be repaid, even if the company does not
grow
Monitoring: Monthly and quarterly diligence of achievement of
targets as per business plan. Will eliminate any surprises
Lending Criteria
- Safety of money will be top priority for which charge on cash flow, charge on hard security, pledge of shares, personal guarantee of promoters / directors, etc shall be insisted.
- Prefer to be sole and primary lender
-
Will not lend to a single person driven company. There must be at least two or three promoters /
executives who drive the company
- Will not lend to a company that sells more than 50% of its product to a single entity.
-
Loan size can be Rs 70 mn – Rs 350 mn.
-
IRR can be in a mix of interest and back ended premium or and equity kicker
-
Hand hold the borrower to gain knowledge in strategy, management and governance
Our Advantage
Relationships & Reach
Sponsors have an
established track record of over three decades and strong relationships with Banks, institutions, funds and
corporates.
Sponsors’ presence across the country and internationally to source deals, gather market
intelligence, among others.
Sponsors’ Commitment
Sponsors’ Financial
contribution of INR 200 mn as against a minimum stipulation of INR 50 mn.
Sponsors are committed to assist
the fund in deal sourcing, negotiation, office infrastructure and other services.
Knowledge Base
Sponsors’ over three decades’ knowledge, underlining the capability of credit understanding and operating and management capabilities.