ASK Launches ₹2,500 Crore Private Credit Fund

ASK Alternates, part of the ASK Asset & Wealth Management Group, has launched its second private credit fund with a target corpus of ₹2,500 crore. The fund aims to achieve a 14-16% gross internal rate of return by investing in market-leading businesses. These investments will focus on sectors prioritized by the government, including infrastructure, healthcare, and renewables, benefiting from a favorable policy environment and offshore capital interest.

The strategy emphasizes senior secured lending with tangible collateral, avoiding real estate, distressed debt, and asset-light businesses. Capital preservation is a key focus, with an assessment of how businesses might fare during economic downturns. This launch occurs as India's private credit market experiences intensified competition, with various firms and global heavyweights launching new funds.

The company's maiden private credit fund, which closed and was deployed earlier this year, was ₹569 crore and delivered approximately 15% gross IRR. The first fund's portfolio companies were largely backed by private equity investors, reflecting a focus on governance. ASK Group has increased its commitment to the new fund significantly, aiming to attract offshore investors via structures like Gujarat International Finance Tec-City (GIFT City).