Mumbai, January 22, 2025: Vivriti Asset Management (VAM), a pioneer in Performing Credit investment strategies, announced the maturity and successful exit of its second fund – Vivriti Short Term Bond Fund (VSTBF). Launched in early 2021, this Cat-II AIF (alternative investment fund) was VAM’s second Category II AIFin debt issued by mid-sized corporates to deliver 400-500 bps of spread over prevailing 3-yr G-Sec. This was a roll-down strategy with duration of less than 2 years.

VSTBF attracted investments from a mix of marquee family offices, institutional investors, insurance companies, and ultra-high-net-worth individuals (UHNIs). The fund delivered on anticipated return hurdles, through quarterly income payouts, with low volatility over the 4 years of operation.

Fund Highlights

• Raised INR 350 crore, exercising green shoe option, and invested in 11 portfolio companies
• Consistent quarterly income distributions and capital return, as envisaged

Soumendra Ghosh, Chief Investment Officer, Vivriti Asset Management, said: “VSTBF was conceptualised in 2020 amidst general ‘risk-off’ and low prevailing market rates, which resulted in significant spreads between AAA / AA / A and BBB rated notes. The fund was structured to capitalise on this and helping clients beat the prevailing 2–3-year AA-rated yields by 250-350 bps, by creating loss protection tranche on a portfolio of A-rated notes, thereby reaching a rating of AA+ (SO) by Crisil on the units of VSTBF. Portfolio construction considered need for safety, short duration, and adequate diversification, in view of challenges in modelling risk back in 2020 (pre-wave II of covid), and imminent advent of inflation and consequent pickup in policy rates through the life of the fund. As we mark its complete exit and capital giveback, I thank our investors for their confidence in us in less certain times.”

About Vivriti Asset Management:

Vivriti Asset Management (VAM), established in 2019, is a SEBI and IFSCA registered asset manager, investing in debt issued by mid-sized enterprises. The firm has invested over INR 7,500 crore across its strategies in 90+ firms, counts over 1,000 unique LPs, and returned ~INR 1,800 crore of capital to investors, since inception.

It is part of Vivriti Group, which manages a portfolio of more than INR 11,000 crore across its lending and asset management businesses.