True North credit fund raises ₹1,000 crore

The fund is raising capital from Indian UHNIs and family offices

- Ranjani Raghavan & Sneha Shah

True North, the homegrown private equity firm with assets under management of over $3 billion, has raised ₹1,000 crore towards its maiden credit fund, marking its foray into a second asset class, two senior executives told Mint.

The credit fund that is raising capital from Indian ultra high net worth individuals (UHNIS) and family offices, will deploy the capital over the next five years, and is targeting a 15-18% internal rate of return (IRR), Vishal Nevatia, founder and managing partner, True North and Kapil Singhal, managing partner at True North's private credit unit, said. The firm expects to close the credit fund with ₹1,300-1,400 crore of capital by December.

True North has so far raised six private equity funds and has looked at a second asset class to complement its private equity business for over the last five years. It closed its 6th private equity fund at $600 million.