Key Takeaways
- • Investec Capital launches EICOF II, a Category II Alternative Investment Fund registered with SEBI, targeting INR 1,500 crore in aggregate commitments with a focus on Indian mid-market private credit.
- • EICOF II achieved first close earlier in November 2021 with aggregate commitments exceeding INR 6.5 billion, demonstrating strong investor demand within an accelerated timeline.
- • The fund succeeds EICOF I, Investec's maiden Indian private credit fund, which achieved AUM of over INR 16 billion including co-investments, establishing a proven 10-year track record in mid-market credit underwriting.
- • Investment strategy targets diversified, sector-agnostic credit investments across acquisition financing, refinancing, stake consolidation, growth capex, asset financing, dividend recapitalization, and bridge financing for Indian mid-market corporates.
- • Investec Capital is structured as an ~80:20 joint venture between Investec Bank plc and SBI Capital Markets Limited (State Bank of India subsidiary), combining international banking expertise with domestic market access.
Summary
Investec Capital has successfully launched the Emerging India Credit Opportunities Fund II (EICOF II), a SEBI-registered Category II Alternative Investment Fund that represents a significant expansion of the firm's private credit presence in India. The fund achieved its first close in early November 2021 with aggregate commitments exceeding INR 6.5 billion against a target raise of INR 1,500 crore, demonstrating robust institutional investor appetite for private credit solutions in India's mid-market segment.
EICOF II serves as the successor to Investec Capital's maiden private credit fund, EICOF I, which had achieved approximately INR 16 billion in assets under management including co-investments. This strong performance track record—spanning over a decade of mid-market credit underwriting in India—has evidently resonated with institutional investors, as reflected in the fund's rapid first close. According to Piyush Gupta, Head of Credit Markets at Investec Capital, the "exceptionally strong investor response" and "unprecedented timeline for the first close" underscore investor confidence in the firm's performance and market positioning.
The fund employs a diversified, sector-agnostic investment strategy focused on private credit solutions for Indian mid-market corporate groups with strong promoter pedigree, sound corporate governance, and robust financial performance. EICOF II will deploy capital across multiple end uses typically underserved by traditional bank finance, including acquisition financing, refinancing requirements, stake consolidation, growth capex financing, asset financing, dividend recapitalization, and bridge financing. This flexible mandate positions the fund to address structural gaps in credit availability for India's lower mid-market segment.
Investec Capital's structure as an approximately 80:20 joint venture between Investec Bank plc and SBI Capital Markets Limited (a 100% subsidiary of State Bank of India) provides distinctive advantages for competing in India's alternative credit market. The partnership combines Investec's international private debt expertise with SBI Capital's deep domestic market relationships and regulatory access, establishing the firm as a credible multi-service provider across credit markets, corporate finance advisory, equities sales and trading, and equity capital markets.
EICOF II serves as the successor to Investec Capital's maiden private credit fund, EICOF I, which had achieved approximately INR 16 billion in assets under management including co-investments. This strong performance track record—spanning over a decade of mid-market credit underwriting in India—has evidently resonated with institutional investors, as reflected in the fund's rapid first close. According to Piyush Gupta, Head of Credit Markets at Investec Capital, the "exceptionally strong investor response" and "unprecedented timeline for the first close" underscore investor confidence in the firm's performance and market positioning.
The fund employs a diversified, sector-agnostic investment strategy focused on private credit solutions for Indian mid-market corporate groups with strong promoter pedigree, sound corporate governance, and robust financial performance. EICOF II will deploy capital across multiple end uses typically underserved by traditional bank finance, including acquisition financing, refinancing requirements, stake consolidation, growth capex financing, asset financing, dividend recapitalization, and bridge financing. This flexible mandate positions the fund to address structural gaps in credit availability for India's lower mid-market segment.
Investec Capital's structure as an approximately 80:20 joint venture between Investec Bank plc and SBI Capital Markets Limited (a 100% subsidiary of State Bank of India) provides distinctive advantages for competing in India's alternative credit market. The partnership combines Investec's international private debt expertise with SBI Capital's deep domestic market relationships and regulatory access, establishing the firm as a credible multi-service provider across credit markets, corporate finance advisory, equities sales and trading, and equity capital markets.
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