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JM Financial has announced the first close of its performing credit Fund – JM Credit Opportunities Fund – 1. This marks the first close of the maiden performing credit fund offering by JM Financial Group. The fund is managed by JM Financial AMC as Investment Manager. JM Credit Opportunities Fund - 1 (“COF” or “JM Credit Fund”), a category II AIF registered with SEBI, is a sector-agnostic private credit fund. It aims to capture opportunities from the dislocations in credit markets caused by regulatory differences between banks and NBFCs, for both promoters and operating companies. While sector agnostic, the fund looks at opportunities across consumer, healthcare, manufacturing, conglomerates, B2B and services, renewables ESG oriented companies and sectors. The fund targets gross returns in the mid to high teens through a mix of secured lending, with potential upside participation in equity performance of underlying companies. The fund targets a final close around June 2024 with a target deployment of INR 1500 cr (inclusive of co-investments with JM Group) JM Credit Fund obtained SEBI approval in January 2023 and was launched in March 2023, and is expected to shortly announce its first few investments over the current quarter.

Commenting on the fundraise, Mr. Anuj Kapoor, Managing Director & CEO, Private Wealth and Alternatives Asset Management, JM Financial said “This fundraise marks the first milestone of our Credit Fund business. It underscores the commitment of the franchise to the credit business, which is currently active through the NBFCs, ARC and distressed fund formats. JM Financial brings strong origination capability and a long and unparalleled history of thoughtful underwriting, portfolio management practices, experienced team, and governance to the credit business. The fund also underlines the strong appetite of HNIs and family offices for this asset class. Over time, we plan to launch adjacent strategies in line with the firm and team’s expertise, and evolving market opportunities.”

Commenting on the fundraise, Mr. Pranob Gupta, Managing Director & CIO, Credit Opportunities Fund, JM Financial said “Private Credit is a key asset class and with this flagship credit fund of JM Financial Group, we plan to offer investors a carefully curated portfolio of deals with strong focus on disclosure and governance. As per current discussions, JM Credit Fund and JM Group along with associated coinvestments has obtained ~INR 600 cr of commitments which will be invested over the current quarter”.

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