Modulus Launches ₹2,000 Crore Private Credit Fund for Indian Mid-Market

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Overview

Modulus Alternatives has launched its third private credit fund, MCOF III, aiming for ₹2,000 crore. The fund targets performing private credit opportunities in India's mid-market segment, focusing on senior-secured lending and a projected 16% annual IRR. This initiative addresses the persistent credit gap faced by mid-sized Indian companies.

Fund Structure and Strategy

The Modulus Credit Opportunities Fund III (MCOF III), a SEBI-registered Category II Alternative Investment Fund, is structured with a five-year tenure. It zeroes in on performing private credit opportunities within the nation's mid-market companies.
The fund's investment strategy centers on senior-secured lending. Target sectors include chemicals, healthcare, pharmaceuticals, industrials, clean energy, and auto ancillaries.

Proven Track Record

Modulus Alternatives has a history of successful deployment. Its previous two funds collectively deployed over ₹3,150 crore across 29 transactions.
Notably, the firm reported zero credit losses in its existing portfolio. Eighteen successful exits have returned more than ₹1,900 crore to investors.

Management and Market Opportunity

Alok Agarwal, Equity Partner at Modulus Alternatives, stated the firm's ambition to scale while maintaining rigorous credit underwriting and portfolio monitoring. Executive Chairman of Centrum Group, Jaspal Bindra, highlighted the focus on risk management and capital preservation.
This fund launch occurs as many Indian mid-market companies struggle to access traditional bank financing. Modulus positions MCOF III as a solution to this structural credit gap, emphasizing diversified, senior-secured lending backed by strong governance.

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