Creation Investments Capital Management, a Chicago based alternative asset manager and leading impact investor, has launched its first ever debt fund in India. Its maiden fund will be exclusively focus on providing debt financing to non-bank financial companies or NBFCs. It offer debt funding to NBFCs that are especially focused on areas such as micro-lending, affordable housing, vehicle loans, small- and medium-enterprise lending (SMEs) and education finance.
This news should spell good news for India’s NBFC industry that was badly hit by COVID-19 lockdown last year.
Separately, Capital Management has opened its first India office, which will be located in India’s IT city of Bengaluru. Its India operation will be spearheaded by Remika Agarwal, finance veteran and one of the respectable names in India’s finance industry.
The office in Bengaluru will help manage the firm’s growing portfolio of Indian companies that provide capital to those hailing from the economically weaker section. Over the last one decade, the investment company has poured more than $300 million in scores of Indian companies in sectors like microfinance, SMEs, fintech, payments, agri-warehousing and finance and other businesses seeking to improve the standard of living of economically marginalized people.
Commenting on its India-focused approach, Patrick Fisher, Founder and Managing Partner, Creation Investments, said, “We are delighted to welcome Remika to Creation and are excited to open our India office after building a strong presence in the country. Our efforts have helped Indian families and businesses by supporting companies that provide crucial capital needs. We aim to expand and accelerate our investments in the world’s second most populous country through our first debt fund and other initiatives.”
Remika Agarwal, Vice President and Country Head, Creation Investments, said, “Our portfolio companies, which have withstood the shocks of the Covid-19 pandemic and earlier demonetization in India, remain strong. We continue to seek investments in companies that have robust business models, strong management teams, and sound Environmental, Social, and Corporate Governance (ESG) credentials.”