Creation Investments Sets up Debt Fund to Invest $100 Million in India
India, February, 17 2021 -
Global impact investor Creation Investments Capital Management LLC is setting up a debt fund in India and will raise $100 million to invest in the country, the company said.
The Chicago, US-based alternative asset manager has appointed Remika Agarwal as its vice-president and country head for India.
India is Creation’s single largest destination for impact investments in companies providing access to capital to unbanked and underbanked families and businesses. The fund focuses exclusively on providing debt financing to non-bank financial companies (NBFCs) serving the Indian population in areas such as micro-lending, affordable housing, vehicle loans, small- and medium-enterprise lending (SMEs), and education finance.
“Investors in Creation’s earlier private equity funds, including family offices, have indicated interest in committing capital to the firm’s initial debt fund,” the fund said in a release.
“We aim to expand and accelerate our investments in the world’s second most populous country through our first debt fund and other initiatives,” said Patrick Fisher, founder and managing partner, Creation Investments.
Over the past 10 years, the firm has invested over $300 million in several Indian companies that specialise in microfinance, SMEs, fintech, payments, agri-warehousing, finance and other businesses.
“Our portfolio companies, which have withstood the shocks of the Covid-19 pandemic and demonetisation in India, remain strong. We continue to seek investments in companies that have robust business models, strong management teams, and sound environmental, social, and corporate governance credentials,” said Agarwal.
She has more than 14 years of experience in the industry and previously headed the structured finance and products at a large non-bank financial company in India. Before that she was vice president of a leading Indian ratings agency for over a decade. Agarwal plans to hire up to two associates this year to help manage the firm’s growing portfolio of Indian companies that provide capital to those at the bottom of the economic pyramid.
As of December 31, 2020, the firm manages more than $725 million in private funds and other vehicles on behalf of individuals, family offices and institutional investors.