JM Financial Credit Alternatives, the credit alternatives arm of the JM Financial Group, has completed first close of its maiden "JM Financial Yield Enhancer (Distressed Opportunity) Fund I" with commitments aggregating at Rs. 160 crore from HNIs, family offices and institutions.
The JM Financial Yield Enhancer (Distressed Opportunity) Fund I is a Category II AIF, and was set up in July last year after receiving requisite approval from SEBI. It is a sector agnostic fund with its core investment strategy aligned with the macro-economic scenario. The fund will invest to build a portfolio with downside protection.
Speaking on the announcement, Mr. Mukund Kannappan - Chief Investment Officer, Credit AIF said "We are pleased with the response to our Distressed Opportunity Fund. The first close is extremely important to us, as it demonstrates the confidence of the investors in our consistent strategy and credentials in reviving stressed assets. Our core investment strategy focuses on investing in enterprises that are going through various stages of stress at distress valuations as well as address the source of stress and help the enterprise revive and exit at fair market valuations.
The investment opportunities in distressed asset space in India are growing. We believe that distressed assets have become one of the most preferred asset classes for the domestic and global investors. The stressed asset funds follow the investment mandate of ploughing money into companies in financial distress and turning them around.