PL Capital Performing Credit AIF

Private credit offers higher yields, lower volatility, and unique opportunities unavailable in public markets. It provides consistent income and adds diversification to your portfolio.

Benefits of investing in AIFs include:

• Strategic diversification of your portfolio beyond just equity markets.
• Access to exclusive and unique investment opportunities.
• Potential for higher returns.
• Portfolio expertly managed by seasoned investment professionals.
• Tailored strategies aligned with your goals and risk profile.
• Opportunity to build a portfolio across asset classes while managing risk

The minimum investment amount is INR 1 crore for investors. Please contact our team for detailed information.

The tax treatment of AIFs varies based on the category of the fund. Category I and II AIFs are pass-through vehicles where income is taxed in the hands of investors. Category III AIFs are taxed at the fund level, and investors are not directly taxed on the fund’s income.

Yes, AIFs are regulated by the Securities and Exchange Board of India (SEBI). They operate under a regulatory framework designed to protect investors’ interests and ensure transparency in operations.

AIFs come in various forms, each designed to meet different investment objectives. Here’s a brief overview of some key AIF types

• Performing Credit AIFs
  Focus on secured lending and investing in performing credit assets, offering steady returns by targeting companies with strong credit profiles.
• Real Estate AIFs
  Focus on investments in real estate projects or companies, offering opportunities for capital appreciation and rental income.
• Pre-IPO AIFs
  Invest in companies that are expected to go public soon, offering early access to potentially high-growth opportunities.
• Private Equity AIFs
  Invest in private companies, providing capital for growth, buyouts, or restructuring, with the aim of realising significant returns upon exit.
• Venture Capital AIFs
  Focus on investing in companies that are not yet listed on any stock exchange, often in niche or emerging sectors.
• Special Situations AIFs
  Target unique opportunities arising from corporate restructurings, distressed assets, or other atypical situations, aiming for significant returns by capitalising on market inefficiencies.
• Equity AIFs
  Invest primarily in listed equity shares, targeting capital appreciation over the long term.
• Multi-Cap AIFs
  Invest across companies of varying market capitalisations—large-cap, mid-cap, and small-cap—providing a diversified equity portfolio that balances growth and stability.
• Multi-Asset AIFs
  Allocate investments across various asset classes such as equity, debt, and real estate, offering diversification and balanced risk-adjusted returns.
• Hedge Funds AIFs
  Employ advanced investment strategies, including leveraging, short-selling, and derivatives trading, to generate high returns across different market conditions.
• Fixed Income AIFs
  Focused on generating steady returns through investments in bonds, debentures, and other debt instruments.

Yes, AIFs typically have a lock-in period that varies depending on the specific fund. This period is designed to match the investment horizon of the underlying assets and strategies. Investors should carefully consider the lock-in period before investing.

Our performing credit strategy focussing on regular income/coupon in generally senior secured investments and party equity/convertibles. The aim is to generate return mix of regular coupon and an expected limited upside thru premium.

Focus of our Performing credit strategy shall be:

• Senior secured loans but also can invest across the capital structure based on fund mandate and investee requirements. Focus on mid-market unlisted companies with track record of operating profit, in general.
• The strategy is also to provide subordinated debt to strongly performing companies with non-cyclical cash flows and high equity buffers. Such investments shall be in companies with significant enterprise value, and ability to be generate asset value/cash cover during the investment tenure. Applicable to SPVs also.
• The strategy in selected cases may generate additional returns through warrants and equity investments as part of the debt investment.
• The strategy, selectively, also focuses on incomplete syndication processes and opportunistic secondary market investments in companies and sectors that are already well known to the firm.
• The strategy focuses on performing credit rather than stressed/distressed debt and loan-to-own debt investments.
• Focus will be on downside protection and not on upside maximisation.
• Our portfolios tend to be negatively skewed, with few losses and even fewer unexpected gains.

Our investment theme is focused on investment themes such as solving for inefficient capital structure leading to temporary cashflow mismatch, providing growth capital to companies, acquisition funding, special situation funding like last-mile funding etc. The Fund could potentially invest in:

• Inefficient capital structure leading to temporary cash-flow-mismatches situations: Tailored/structured solutions for companies facing temporary cash flow mismatch situations including refinancing with tenor elongation etc.
• Growth capital to companies: Growth capital to mid-market companies which do not have access to funding from banks/other traditional financial institutions.
• Special situation funding like last-mile funding: Last-mile funding to companies requiring additional funding to complete the final leg of their CAPEX plan.
• Acquisition financing: Acquisition funding to companies looking for inorganic growth through acquisitions.
• Turnaround financing: Companies with evident turnaround in business but still non approachable to traditional financing due to ratings, capital structure and other reasons.
• Stake Consolidation: Promoter funding for consolidation of stake in listed/unlisted companies.
• Mezzanine Structures: Holdco investment structures for part promoter contribution in Opco, stake buyout etc.