Fund News
NBFC Northern Arc launches Finserv AIF; targets Rs.1,000-Cr corpus, 6 sectors
Non-banking financial company (NBFC) Northern Arc has launched a performing credit Alternative Investment Fund (Category II) - ‘Finserv Fund’ - through its subsidiary, Northern Arc Investment Managers (NAIM). The fund aims to raise INR 1,500 crore, including a greenshoe option of INR 500 crore.The Finserv fund aims to fuel financial inclusion and economic growth across six sectors - MSME, affordable housing, vehicle finance, agriculture finance, microfinance, and consumer finance. Northern Arc looks to provide long-term debt capital to financial intermediaries focused on lending to underserved and unserved segments through the fund. It will invest in a diversified portfolio across 45-55 entities within the company’s key focus sectors. This fund targets gross returns of 14-14.50% XIRR. The fund is the 11th AIF launched by the firm.Northern Arc manages an AUM of INR 14,639 crore through its balance sheet and active AIF funds as of June 30, 2024.
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