RV Capital is entering India at a time when Asia’s third-largest economy is set to become a hotspot in the region for private credit, in part because of rules that forbid bank loans being used for mergers and acquisitions. India-focused assets under management in private debt nearly doubled to US$15.5 billion ($21.2 billion) as of December 2022 from a year earlier, according to financial data provider Preqin.
RV’s India fund is sector agnostic, Karmakar said, but will stay away from funding real estate construction, venture debt and also those companies where lenders have taken a haircut but the management hasn’t changed.
“We are open for holding company, promoter, acquisition types of asset-backed financing,” he said.
The focus will be on the deal structure and collateral to reduce credit risk and ensure recovery in a scenario where the underlying credit isn’t doing well, he added.
