Northern Arc aims to raise Rs 1,000 cr through alternate investment fund | Company News

The AIF is targeting to invest in 45-55 entities across its four-year cycle. | Representative Picture

The AIF is targeting to invest in 45-55 entities across its four-year cycle and deliver an internal rate of return of 14-14.50 per cent to the investors, NAIM chief executive Bhavdeep Bhatt said.

The investment strategy focuses on higher risk-adjusted returns and regular investor cash flows by investing in a diversified pool of debt securities of financial institutions to support their growth, the statement said.

The NBFC has Rs 14,639 crore of assets under management through its balance sheet and active AIF funds as of June 30, 2024, while NAIM has had four successful fund exits that have provided net fund returns of 11.72 per cent – 15.77 per cent post-expense pre-tax.

Northern Arc’s managing director and chief executive Ashish Mehrotra said its network of 328 originator partners, 50 retail lending partners and over 1,000 investor partners will allow it to manage the portfolio effectively.

First Published: Oct 07 2024 | 11:48 PM IST