SEBI allows Alteria Capital to float Rs 1000 Cr venture debt fund

Alteria Capital Advisors LLP has received approval from the SEBI (Securities and Exchange Board of India) to float a Rs 1,000 crore venture debt fund. It is raising Rs 800 crore with a green-shoe option of another Rs 200 crore.

Last August, the regulator modified rules for alternative investment, which further makes it easier for fund managers to float their funds.

Earlier, in August, this year, Ajay Hattangdi and Vinod Murali, former senior executives at Temasek-backed InnoVen Capital, announced their planning to launch the India’s biggest venture debt fund.

Based out of Mumbai, the VC firm was in the process of registering it with SEBI as a category II AIF (Alternative Investment Fund) with a tenure of seven years and a possible extension of two years.

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“We are looking to make our first close for the fund by the first quarter of 2018, with commitments received for 40-50% of the fund by then, and will start doing deals,“ Murali told ET, adding that the firm has already begun the due diligence for potential portfolio companies.

According to Murali, Alteria expects to generate robust returns, with fixed income returns pegged between 15% and 17%, along with an equity upside for investor partners making the asset class extremely attractive for them.

Hattangdi and Murali, formerly chief executive and deputy CEO respectively at InnoVen, left the Temasek-backed firm in August following a fall-out within the management.

With investments of Rs 1500 crore in FY17, the duo had played a vital role at InnoVen in providing debt fund to some of the prominent startups such as ShopClues, Byju’s, Swiggy, OYO Rooms, Practo, Snapdeal, and Pepperfry.

The latest development could pit the brand new venture debt provider in a head-to-head tussle with InnoVen Capital.

SEBI