InCred Capital launches Rs 1,000-Cr Alternate Investment Fund post-merger with KKR

InCred Capital Financial Services Ltd, which merged with PE giant KKR’s corporate finance arm in 2022, has launched a Rs 1,000-crore Alternate Investment Fund (AIF) that aims to tide over volatile market conditions. 

The Category III AIF (InCred Liquid Alternative Fund-I) will adopt a multi-strategy quant approach to generate superior risk-adjusted returns (vis-a-vis debt-plus funds) in the medium-to-long term. It will be helmed by hedge fund veteran Rishi Kohli, who was appointed as CIO of InCred Alternative Investments in 2022. 

“The fund will seek to generate alpha returns independent of market volatility and directionality. It intends to deploy a spectrum of long-short strategies across futures, options and special situations for appropriate diversification,” InCred Capital shared in a statement.

Commenting on its launch, Bhupinder Singh, Founder & Group CEO of InCred, said, “This fund is yet another example of our vision to provide investors with access to the best investment opportunities possible in the Indian markets…. The launch of our first long-short fund will be followed by other quant strategies from the InCred stable.”

Rishi Kohli, Managing Partner & CIO - Hedge Fund Strategies at InCred Alternative Investments, added, “This fund will enable InCred to offer investors a superior risk-adjusted return along with portfolio diversification… It aims to provide investors an exciting alternative to debt funds.”

InCred, which is backed by investors like Investcorp, Elevar Equity, Oaks, Moore Capital, and Paragon Partners among others, is also said to be in talks with a bunch of pension and sovereign wealth funds to raise $150 million, following its merger with KKR which created one of India’s largest NBFCs with a $600 million balance sheet. 

“InCred Finance’s business has emerged in great shape from the pandemic delivering top-notch risk performance. The strategic partnership with KKR significantly accelerates our ability to deliver our class-leading offerings at a large scale and to capitalize on the enormous credit opportunity in India,” CEO Singh had said in an earlier statement.