Contractual repayments
Debt investments are structured around interest payments and repayment of principal.
Category II Private Credit AIF
Godrej Performing Credit Fund
Godrej Asset Management's private credit fund focuses on established Indian mid-market businesses. It combines direct borrower origination, secured lending structures and active monitoring through the credit lifecycle.
What is Performing Credit?
Private lending to operating businesses
Performing credit finances businesses expected to service debt through operating cash flows. Interest, principal repayment, security and recovery outcomes shape investor returns.
Security and structure
Collateral, covenants and repayment priority are assessed before capital is deployed.
Cash-flow focus
The ability of borrowers to generate and preserve cash is central to credit selection.
Credit risk remains
Security can help mitigate losses, but does not guarantee repayment or capital protection.
Fund Overview
A sector-agnostic mid-market focus
The fund materials describe diversified deployment to established companies for refinancing, debt consolidation, working capital and growth capital. The manager prefers direct relationships and credit structures supported by collateral.
- Companies generally have positive EBITDA, at least five years of operating history and revenue of up to INR 5,000 crore.
- The stated target security cover is 1.5x–3x, depending on the transaction.
- Structures may include senior secured, structured, mezzanine and asset-backed lending.
- Actual deployment depends on available borrowers, approvals and fund documents.
Credit Selection
Borrower quality before yield
The team assesses management, financial history, leverage, repayment capacity and collateral before a credit reaches investment committee review.
- Direct meetings with borrower management and reference checks.
- Financial analysis, regulatory and bureau checks, and independent collateral valuation.
- Preference for senior secured structures with enhanced protections for subordinated exposure.
- Exclusion of wilful defaulters, fraud or RFA-tagged borrowers, non-performing accounts, weak collateral and venture debt.
Risk Management
Monitoring continues after deployment
The Head of Credit and origination team monitor accounts, covenants and borrower health. An early-warning framework seeks to identify emerging stress.
Covenant tracking and account-level surveillance throughout the investment.
Regular review of leverage, interest and debt-service coverage, liquidity and ratings.
Repayment delays, working-capital stress and collateral deterioration treated as warning signals.
Governance issues and adverse regulatory developments escalated for review.
Diversification
Limits across borrowers, groups and industries
The presentation describes portfolio limits intended to reduce reliance on any single exposure. Diversification can reduce concentration, but it cannot remove credit or recovery risk.
Borrower limit
10%
Group limit
15%
Industry limit
25%
Private Credit Team
Experience across origination and credit oversight
The fund materials identify Pavan Manchala as Head and CIO of Private Credit, Sumit Dawar as Co-Head and Ravi Movva as Head of Credit.
Pavan Manchala
24+ years in banking and structured lending; previously built a large private credit platform at Kotak Alternate Assets.
Sumit Dawar
22+ years in capital markets and mid-market origination, including prior work at Kotak Alternate Assets.
Ravi Movva
22+ years in credit underwriting and risk management, including monitoring and early-warning frameworks.
Team experience and historical platform figures are not performance results of this fund. Past performance is not indicative of future returns.
Why Private Credit?
An income-oriented private-market allocation
Eligible investors may evaluate private credit alongside listed equity and conventional fixed income, weighing contractual income potential against borrower, liquidity and recovery risks.
Different return drivers
Outcomes depend on private borrower cash flows and repayments rather than listed-market prices alone.
Structured opportunities
Category II AIFs can access privately negotiated debt and credit instruments.
Active oversight
The manager can apply underwriting, covenants, collateral review and ongoing monitoring.
The fund's 16% gross IRR is a target, not a promised return. Capital, distributions and recovery are not guaranteed. Investors should read the private placement memorandum and consult their advisers.
FAQ
It is a close-ended Category II Alternative Investment Fund focused on lending to established mid-market businesses in India.
The supplied fund materials list INR 1 crore as the minimum investment, subject to eligibility and the definitive fund documents.
No. The 16% gross IRR stated in the materials is a target. Returns, distributions and capital are not guaranteed.
The presentation states five years from first close, with potential one-year plus one-year extensions subject to investor consent.
Next Step
Speak With BlackSwan Securities
Connect with our team to review suitability and the official Godrej fund documents.