JM financial credit fund achieves its first close at Rs. 600 cr; final close at ₹1,500 cr

JM Financial aims to secure a final close of the fund, including co-investments, at around ₹1,500 crores. As a testament to its confidence, the group has invested 10% of the capital as a sponsor commitment into the fund. The fund will primarily provide lending for scenarios where traditional banks face limitations, such as domestic acquisitions or partner buyouts.

In a significant development, financial service group JM Financial has achieved the initial milestone for its inaugural performing credit fund, the JM Credit Opportunities Fund -1.

Sources reveal that the fund has garnered over ₹600 crores in commitments from domestic HNIs (High Net Worth Individuals) and family offices. This credit strategy is set to become JM Financial’s flagship venture, and when combined with co-investments, the total commitment surpasses ₹600 crore. 

Anuj Kapoor, the Managing Director & CEO of Private Wealth and Alternatives Asset Management at JM Financial, expressed his intentions to deploy the entire capital within this quarter.

JM Financial aims to secure a final close of the fund, including co-investments, at around ₹1,500 crores. As a testament to its confidence, the group has invested 10% of the capital as a sponsor commitment into the fund. The JM credit fund received approval from SEBI in January 2023 and was launched in March of the same year. Pranob Gupta has been entrusted with the management of the credit fund.

It is worth noting that the fund will not venture into distressed situations or real estate. Instead, it will focus on attaining mid to high teen returns. 

Kapoor emphasized JM Financial’s extensive experience in structured lending through its NBFC (Non-Banking Financial Company) over the past two decades. While several NBFCs have dwindled and numerous credit funds have emerged in recent years, JM Financial aims to differentiate itself by leveraging its robust platform. Within its ecosystem, the company enjoys a steady flow of deals and boasts a strong underwriting capability, as exemplified by the track record of its NBFC. Kapoor added that they will primarily provide lending for scenarios where traditional banks face limitations, such as domestic acquisitions or partner buyouts.

JM Financial has set its sights on deal sizes ranging from ₹200-300 crore to ₹500 crore and beyond. Kapoor indicated that while individual investment sizes through the fund will be in the range of ₹50-100 crore, they will also engage in larger deals and distribute the remaining exposure.