ASK Alternates, part of the Blackstone-backed ASK Asset and Wealth Management Group, has launched its second private credit fund, following the closure and full deployment of its debut fund earlier this year.
Fund II is targeting a corpus of Rs2,500 crore (£195.2m), including a greenshoe option of Rs1,500 crore. ASK Group will commit up to Rs100 crore to the fund.
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The new private credit fund is aiming for a gross internal rate of return (IRR) of 14 per cent to 16 per cent, in line with the 15 per cent gross IRR generated by the first fund, through investing in high quality businesses backed by “reputed” Indian promoters, global private equity, sovereign wealth firms and global strategics.
Mumbai-based ASK Alternates said the strategy will focus on senior secured lending with tangible collateral, while avoiding exposure to real estate, distressed debt, venture debt, and struggling or asset-light businesses.
The new fund is expected to invest across 12 to 15 transactions, with lower single-asset exposure of six per cent to seven per cent and sector concentration below 10 per cent.
The larger fund size will enable it to improve pricing power at the same time as maintaining strict credit discipline, the firm said.
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A longer reinvestment period of 3.5 years is designed to enhance capital efficiency and generate higher distributed to paid-in capital, along with the ability to onboard offshore investors through a GIFT city-based feeder fund structure of ASK Group.
“We lend to businesses with proven cash flows, strong sponsors, and tangible collateral cover,” said Shantanu Sahai, head of private credit at ASK Alternates. “Further, we focus on sectors that are considered high priority by the government, which in turn ensures favourable regulatory tailwinds, as well as interest from offshore capital pools. With Fund II, we are scaling the platform while staying disciplined on credit quality, with the aim of delivering consistent and predictable returns.”
ASK Asset and Wealth Management Group, whose clients are typically high net worth and ultra high net worth, manages assets of more than Rs77,000 crore.
