Home / Business and Economy / Modulus Launches ₹2,000 Cr Credit Fund for Mid-Market
Modulus Launches ₹2,000 Cr Credit Fund for Mid-Market
20 Jan
Summary
- New fund aims for ₹2,000 crore corpus, targeting mid-market companies.
- The fund targets a gross internal rate of return of approximately 16% annually.
- Modulus Alternatives has a strong track record with zero credit losses in prior funds.
Modulus Alternatives Investment Managers Limited announced the launch of its third private credit fund on January 20, 2026. The Modulus Credit Opportunities Fund III (MCOF III) is targeting a corpus of ₹2,000 crore, including a green-shoe option, to invest in performing private credit opportunities within India's mid-market segment.
The SEBI-registered Category II Alternative Investment Fund has a five-year tenure and aims for a gross internal rate of return of approximately 16% per annum. Its strategy involves senior-secured lending to mid-market companies in sectors such as chemicals, healthcare, pharmaceuticals, industrials, clean energy, and auto ancillaries.
Modulus Alternatives, established in 2018 and backed by the Centrum Group, has a successful history. Its two previous funds deployed over ₹3,150 crore across 29 transactions, reporting zero credit losses and returning over ₹1,900 crore to investors through 18 exits. The firm's maiden fund delivered a gross IRR exceeding 17% upon its complete exit in December 2024.
The launch addresses the ongoing challenges faced by Indian mid-market companies in accessing traditional bank lending. Modulus positions MCOF III as a solution to this structural credit gap, offering diversified senior-secured lending backed by institutional-grade governance.
