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Credence Family Office, a leading multi-family office services provider, proudly announces the launch of its inaugural Securitised Debt Instrument (SDI) offering, in collaboration with Vivriti Asset Management.

SDIs are SEBI-regulated securitised debt instruments, backed by cash flows from underlying bonds or non-convertible debentures (NCDs). The underlying bonds and the SDI are separately rated by credit rating agencies. The SDIs have been listed on BSE. The SDI provides investors with access to multiple corporate bonds through a single investment vehicle, thereby diversifying their exposure at a relatively small ticket size of investment of INR 1 lakh.

SDIs are an addition to the overall demand-supply dynamics in the Indian debt market, particularly for mid-market enterprises (MMEs). The mutual funds segment still remains largely elusive for MMEs, while banking capital has been finding more allocation to the retail segment. Alternative investment funds as a pool of capital are finding decent traction in recent times, however higher ticket size of INR 1 crore limits participation. SDIs, with a lower minimum ticket size, provide alternate debt investment opportunities to an average investor on one side, which have so far largely been restricted to mutual funds, while simultaneously helping MMEs with an additional avenue for diversifying their resource profile

Mitesh Shah, Founder and CEO at Credence Family Office, said: “Like equity, bond portfolios also need diversification for risk mitigation; but given that direct bonds come with minimum face value, it restricts the ability of an average investor to build a fully diversified bond portfolio. Democratization and risk assessment of fixed income instruments, in the performing credit space, was an essential next step to fill the void left by mutual funds. This deal in partnership with Vivriti, demonstrates our intent to continuously expand differentiated offerings for our discerning clientele.”

Ajay Kejriwal, who leads the Trading Desk at Vivriti Asset Management, said: “We at Vivriti Asset Management are happy to have contributed to Credence Family Office’s SDI offering, bringing to the fore our origination, risk assessment, and deal structuring capabilities. As we continue on our journey of investing in mid-sized corporates, we are excited about the prospects of unlocking capital pools through SDIs."