Modulus Alternatives Announces the Successful Maturity and Exit of its Maiden Private Credit Fund I, Achieving a Gross IRR of 17 percent +

Modulus
Alternatives
Investment
Managers
Limited,
an
established
alternative
asset
manager,
focussed
on
private
credit,
announces
the
successful
maturity
and
complete
exit
of
its
maiden
private
credit
fund,
Centrum
Credit
Opportunities
Fund
(Fund
I).

Launched
in
2019,
Fund
I
was
a
closed-ended
Category
II
AIF
that
invested
INR
1,790
crore,
through
the
Fund
and
other
investors,
across
15
investments
in
sectors
such
as
healthcare
&
pharmaceuticals,
consumer
durables,
specialty
chemicals
and
industrials.
The
portfolio
construct
of
the
Fund
primarily
focused
on
senior
secured
operating
company
exposures
with
regular
coupon-bearing
investments.
Notably,
~45%
of
exits
were
achieved
through
improved
operational
cash
flows,
~30%
resulted
from
equity
raise,
and
the
balance
through
refinancing.

Throughout
its
tenure,
the
Fund
consistently
delivered
mid-teen
returns
while
maintaining
high
credit
quality
and
making
regular
income
distributions
to
its
investors.
At
maturity,
the
Fund
achieved
a
Gross
IRR
of
17.01%,
with
a
median
investor
IRR
(pre-tax,
post-expenses)
of
14.28%.
The
Distributed
to
Paid-In
Capital
(DPI)
of
Fund
I
was
1.50x,
with
Total
Value
to
Paid-In
(TVPI)
at
1.52x.

Alok
Agarwal,
Shareholder
and
Director
at
Modulus
Alternatives

Alok
Agarwal,

Shareholder
and
Director
at
Modulus
Alternatives,
remarked,
“The
success
of
Fund
I is
owed
to
the
seasoned
investment
team
guided
by
an
experienced
investment
committee.
Building
on
this
achievement,
we
are
now
raising
funds
for
Fund
II,
which
will
follow
the
same
strategy.”

Jaspal
Bindra,

Executive
Chairman
of
Centrum
Group,
added,
“We
are
grateful
to
our
investors
who
trusted
us
from
the
beginning.
This
success
is
a
testament
to
the
growing
importance
of
private
credit
in
India’s
economic
growth,
where
it
is
playing
a
vital
role
in
driving
innovation
and
expansion
across
industries.”

Rakshat
Kapoor,
Head
–
Private
Credit
&
CIO,
Modulus
Alternatives,
shared,
“The
successful
maturity
and
exit
of
Fund
I
highlights
our
disciplined
investment
approach
and
our
team’s
ability
to
navigate
volatile
market
conditions.
Despite
challenges
like
the
NBFC
crisis
and
the
pandemic,
we
consistently
delivered
mid-teen
returns,
with
13
of
the
15
investments
exiting
ahead
of
schedule.”

“Post
our
investment,
there
was
a
significant
improvement
in
operating
profile,
profitability
and
credit
ratings
of
the
portfolio
companies.
This
also
demonstrates
our
value
add
through
active
portfolio
management
and
reinforces
our
commitment
to
deliver
absolute
value
to
all
our
stakeholders,” Mr.
Kapoor
further
added.

Following
the
success
of
Fund
I,
Modulus
Alternatives
is
raising
commitments
for
its
second
private
credit
fund,
India
Credit
Opportunities
Fund
II
(ICOF
II).
Succeeding
Fund
I’s
strategy,
ICOF
II
is
focussed
on
performing
private
credit
in
sectors
with
tailwinds,
such
as
healthcare,
pharmaceuticals,
industrials
and
clean
energy.
Fund
II,
with
a
tenor
of
five
years
(ending
in
August
2029),
has
deployed
more
than.
INR
800
crore
across
six
investments.

About
Modulus
Alternatives
Investment
Managers
Limited

Modulus
Alternatives
is
an
established
private
credit
platform
currently
managing
it’s
second
private
credit
fund
–
India
Credit
Opportunities
Fund
II.
Since
its
inception
in
2018,
the
firm
has
deployed
over
INR
2,500
crore
across
21
investments.

Modulus
Alternatives
is
held
by
Centrum
Group
and
Alok
Agarwal,
former
CFO
of
Reliance
Industries
Limited.
The
Board
of
Modulus
is
chaired
by
Mr.
Vinod
Rai,
former
Finance
Secretary
and
CAG
of
India
and
includes
independent
Director,
Mr.
Raman
Uberoi,
a
senior
advisor
for
Government
&
Regulatory
Relations
at
CRISIL
Limited
and
is
a
member
of
SEBI’s
Market
Data
Advisory
Committee.