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With the completion of these exits, VAM has returned more than Rs 3,400 crore to investors through capital repayments and income distributions across two fund vintages. The funds operated through periods marked by changes in business conditions, policy rates, liquidity and the geopolitical environment. Vintage II funds Launched in early 2022, the Vintage II funds completed their final close by September 2023 after raising all committed capital. Investors included institutions such as insurance companies and all-India financial institutions (AIFIs), as well as private investors, including family offices and high-net-worth individuals (HNIs). Across its fund vintages, VAM has offered schemes with conservative and moderate risk profiles. Under its Vintage II strategies, the asset manager raised Rs 1,700 crore in investor commitments and invested more than Rs 3,500 crore across over 45 portfolio companies during the lifetime of the funds. The investee companies operate across several sectors, including infrastructure, covering roads, ports, airports and digital infrastructure; clean energy; manufacturing, including fertilisers and electronic devices; and services such as logistics, co-working, financial services and enterprise software-as-a-service (SaaS). The Vintage II funds collectively returned more than Rs 2,260 crore in capital and income to investors. The moderate scheme generated a gross internal rate of return (IRR) of around 15%, while the conservative scheme delivered a gross IRR of approximately 12%. The conservative scheme invests only in portfolio companies rated in the 'A' category. Aggregated across all investors, returns net of fees and expenses stood at around 13% for the moderate scheme and 10.5% for the conservative scheme. Management commentary Commenting on the exits, Vineet Sukumar, Founder and Managing Director of Vivriti Asset Management, said private credit was addressing financing requirements that fall between conventional bank lending and equity capital. He noted that some fundamentally sound businesses with cash-generating operations require more flexible capital than traditional lending structures can provide. Sukumar said the firm's approach involved structuring transactions in which returns were supported by strong cash flows, alongside measures to protect against downside risks. These safeguards included appropriate security and diversification across sectors and businesses. Soumendra Ghosh, Chief Investment Officer of Vivriti Asset Management, said the fund repayments and outcomes highlighted the role of credit in investor portfolios and the opportunity cost of not allocating to the asset class. He said VAM had returned Rs 3,400 crore to investors across two fund vintages over the past seven years, in line with expectations. According to Ghosh, the funds demonstrated the outcomes associated with the asset class, including steady income, predictable repayment of capital and returns on capital, with low volatility in outcomes. He also highlighted the financing requirements of investee companies that were addressed through flexible capital solutions. Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimershere (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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