STRUCTURED CREDIT STRATEGIES
Realising the huge white space available in the structured credit market in India; InCred launched its alternative credit strategies in the year 2022. The strategy aims to leverage a) InCred Group’s deep credit experience, b) the strength of InCred Group’s wide-ranging capabilities, and c) the structured credit team’s origination and structuring experience.
Structured credit funds aim to deliver its investors attractive risk-adjusted returns in a downside-protected manner over a long period of time. This will be done through differentiated investment philosophy, differentiated risk management framework, and differentiated governance structure.
I. Performing Credit Strategy
InCred’s Performing Credit Strategy provides bespoke, senior secured debt financing to profitable, cash flow-generating mid-market Indian businesses seeking flexible, non-dilutive capital solutions. The strategy focuses on partnering with high-quality, institutionally backed companies operating in high-growth sectors such as CleanTech, Financial Platforms, B2B, Healthcare, and Consumer.
The strategy is underpinned by disciplined underwriting, rigorous portfolio monitoring, granular portfolio construction, and investment structures incorporating regular principal amortization. Together, these pillars are designed to preserve capital while delivering predictable, superior risk-adjusted returns and regular monthly cash distributions.
ICOF I
InCred Credit Opportunities Fund – I (ICOF I) is the inaugural vintage of our Performing Credit Strategy, and was established to fulfil the credit needs of emerging Indian corporates. The Fund provided non-dilutuve long-term capital to high quality, venture capital backed Indian corporates . ICOF -I laid the foundation for the strategy's disciplined investment approach, delivering consistent risk-adjusted returns while establishing an uninterrupted track record of regular monthly cash distributions.
ICOF II
InCred Credit Opportunities Fund – II (ICOF II) is the second vintage of our Performing Credit Strategy. Building on the success of its predecessor, the Fund expanded the strategy's track record by providing senior secured financing to established Indian corporates through a diversified portfolio of high-quality credit investments.
ICOF III
Building on the proven investment philosophy and track record established across the earlier vintages, ICOF III continues to provide tailored, senior secured, non-dilutive debt capital to profitable, cash flow- generative businesses, with a primary focus on high-quality, institutionally backed companies operating in high-growth sectors. The Fund seeks to deliver predictable, superior risk-adjusted returns through a diversified portfolio of senior secured investments, offering investors regular monthly cash distributions while maintaining a strong focus on capital preservation.
II. Special Opportunities Strategy
InCred’s Special Opportunities strategy aims to provide debt financing at deep discounts to asset-rich businesses with stable operations, aiming to realize returns through asset or strategic sales, cash flow generation, or refinancing.
InCred Special Opportunities Fund – I (ISOF-1)
InCred Special Opportunities Fund – I (ISOF-1) is the inaugural vintage of our Special Opportunities strategy-a closed-ended fund designed to generate superior risk-adjusted returns by providing bespoke financing solutions to fundamentally strong Indian businesses with non-traditional capital requirements. The fund focuses on structured debt opportunities at deep discounts, targeting asset-rich, operational businesses across transactional financing, liquidity requirements, and opportunistic situations. The strategy seeks to capitalize on situations where conventional sources of capital may be constrained, while maintaining a strong emphasis on downside protection and capital preservation. ISOF-1 is underpinned by a disciplined risk-mitigation framework, including prudent position sizing, robust collateral protection, and majority control over the borrower’s debt stack. This structure is designed to protect investor capital through a combination of strong underwriting, structural safeguards, and active portfolio monitoring.