Northern Arc Investments announces the closure of the IFMR FImpact investment fund

Markus said the transaction took more than a year to culminate with the global health crisis posing multiple challenges.

Northern Arc Investments announced on Tuesday the successful maturity and closure of the IFMR FImpact investment fund, the first fund in its investment platform and the very first Indian private credit fund focused on the microfinance sector. Launched in 2015, the fund raised Rs 100 crore in commitments from a strong base of investors including banks, insurance companies and HNIs.

The fund’s investment portfolio included 13 companies, which in turn disbursed over $ 10 million in final loans to the unbanked and underbanked segments in India. During its six-year tenure, the fund experienced very volatile phases in India’s financial history, including the government’s demonetization campaign in November 2016, the roll-out of the GST in July 2017, the tightening of liquidity conditions that afflict the financial services sector after the NBFC crisis in 2018. -19 and the national containment induced by the Covid in 2020.

Despite these significant external headwinds, the fund has maintained excellent portfolio quality and has provided consistent cash flow to investors throughout its tenure with no instances of shortfall or delay. At maturity, the fund generated net returns (before tax, after all other expenses) above 15% (in rupees) to its investors, well above its return target of 13%.

Northern Arc Investments CEO Ravi Vukkadala said: “This is a very important and satisfying step for us. This is our second consecutive exit from our investment platform in the past two years, which further strengthens our experience as an experienced private credit fund manager in India. We are extremely grateful for the confidence placed in us by our investors, who have returned to partner with us through several funds, and look forward to their continued support going forward. “

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