The Northern Arc private credit fund in India aims to raise $100M

A $100 million fund will be launched by Northern Arc Investments, a private credit investment manager in India, to look for opportunities in domestic green companies.

According to Ravi Vukkadala, the CEO of the division, the Northern Arc Capital subsidiary started doing international roadshows to solicit money from investors for what would be its first foreign currency private loan fund. According to him, the fund would probably start operations by the end of the month of December.

The project by Northern Arc Capital, one of the biggest credit investors in the nation and sponsored by LeapFrog Investments Ltd., illustrates India's expanding interest in green investments, which is in line with global trends. The MSCI India ESG Leaders Index has increased 3.3% so far this year, keeping pace with gains in the nation's larger equity market.

The move into dollar-denominated funds by Northern Arc Investments is specifically intended to draw in more overseas investors for domestic debt instruments. Rooftop solar solutions, electric vehicles, and battery swapping are a few of the industries the fund will primarily invest in, according to Vukkadala.

We will invest in successful businesses that operate in the green and sustainability space, he said.

The fund will be based in Ahmedabad's Gujarat International Finance Tec-City, a brand-new economic area created to draw foreign investment and promote increased trading in Indian assets.

According to its website, Northern Arc Investments manages assets worth $366 million, or 30.48 billion rupees.