Axis Structured Credit Opportunities

Investment Strategy

• Sector Focus:Multi-sector (excluding real estate)
• Thematic Focus:Structured debt financing, secured lending
• Investment Style:Active management
• Risk Profile:Medium-to-high (due to credit risk exposure)

Fund Structure

• Fund Size:Target ₹1000 Cr + ₹250 Cr (Green Shoe Option)
• Commitment Period:24 months from final closing (extendable by two 6-month periods)
• Capital Lock-in Period:Investor capital locked for fund tenure
• Minimum Ticket Size:₹5 Cr
• Sponsor Commitment:10% of the fund up to ₹100 Cr

Fund Performance

• Net NAV Returns:Not explicitly disclosed, but tracking 13%+ IRR from previous structured credit AIF
• Hurdle Rate:Not mentioned explicitly
• Past Performance:
  • Axis Structured Credit AIF - I returned~83% of invested capital
  • Delivered quarterly coupon payments consistently
  • Some portfolio companies upgraded by2+ notches in credit rating
• Benchmarked Returns:Not provided

Expense Ratio & Fees Analysis

• Management Fees:
  • 1.50%(₹<5 Cr)
  • 1.25%(₹5-10 Cr)
  • 1.15%(₹10-20 Cr)
  • 1.00%(₹≥20 Cr)
• Performance Fees:Not mentioned explicitly
• Other Expenses:Operational, legal, administrative costs (not detailed)

Governance & Management Team

• Fund Managers:
  • Nikhil Garg(14+ years experience in debt markets, private credit, structured finance)
• Decision-making Process:Strong underwriting, credit selection, risk monitoring
• Auditors & Service Providers:Not specified
• Disclosure Standards:Risk and compliance reporting framework in place

Legal, Compliance & Investor Protection

• Regulatory Approvals:SEBI-registered AIF
• Taxation Aspects:Tax implications based on AIF Category II regulations in India
• Investor Grievance Redressal:Standard compliance and regulatory framework in place

Valuation & Liquidity Considerations

• NAV Valuation Methodologies:Not detailed
• Liquidity Options:No early redemption, structured exits through coupon payouts and asset sales
• Alignment with Investor Goals:Income generation via structured debt investments
• Risk Appetite Suitability:Suitable for investors with moderate-to-high risk tolerance

Miscellaneous

• Fund Launch Date:October 2023 (First close)
• Co-investment Opportunities:Not explicitly mentioned
• ESG Score:Not specified
• Fine Print on Fund Tenure & Extension Options:5-year tenure, extendable by 2 years (1+1 structure)