Creation Investments creates debt fund to invest $ 100 million in India

Bombay: Global impact investor Creation Investments Capital Management LLC is setting up a debt fund in India and will raise $ 100 million to invest in the country, the company said. The Chicago, US-based alternative asset manager has appointed Remika Agarwal as Vice President and Country Head for India.

India is Creation’s largest destination for impact investing in business providing access to capital to unbanked and underbanked families and businesses. The fund focuses exclusively on debt financing of non-bank financial corporations (NBFCs) serving the Indian people in areas such as microcredit, affordable housing, auto loans, loans to small and medium enterprises (SMEs) and financing of education.

“Investors in Creation’s early private equity funds, including family offices, have expressed an interest in committing capital to the company’s initial debt fund,” the fund said in a statement.

“We aim to expand and accelerate our investments in the world’s second most populous country through our first debt fund and other initiatives,” said Patrick Fisher, Founder and Managing Partner of Creation Investments.

Over the past 10 years, the company has invested more than $ 300 million in several Indian companies specializing in microfinance, SMEs, fintech, payments, agro-warehousing, finance and other activities.

“Our portfolio companies, which have withstood the shocks of the Covid-19 pandemic and demonetization in India, remain strong. We continue to seek investments in companies with strong business models, strong management teams and strong environmental, social and corporate governance credentials, ”said Agarwal.

She has over 14 years of industry experience and previously led structured finance and products for a large non-bank finance company in India. Prior to that, she was vice president of a leading Indian rating agency for over a decade. Agarwal plans to hire up to two partners this year to help manage the company’s growing portfolio of Indian companies that provide capital to those at the bottom of the economic pyramid.

As of December 31, 2020, the company manages more than $ 725 million in private funds and other vehicles on behalf of individuals, family offices and institutional investors.