Private equity company True North enters the private credit segment

Private equity firm True North has entered the private credit market with the launch of ‘True North Private Credit’.

The company said it recognised the need to expand its product offering beyond private equity (PE) to leverage its capabilities and fully deliver value to all stakeholders. The private credit sector in India is fast evolving into a robust segment, driven by the favourable risk-reward equation and the presence of a good regulatory framework. Hence, True North has decided to foray into private credit (PC) to offer agile capital solutions to well-governed and profitable enterprises and deliver superior, risk-adjusted returns to its investors, the statement said.

True North’s ‘Performing Credit Regular Income Fund’ bridges the supply-demand gaps with custom solutions for middle-market companies. It collaborates closely with founders of cash-flow-generating entities and offers capital solutions for shorter tenures.

The platform was set up in 2022 with a target to raise Rs 1,000 crore in its Fund – I. Currently, it has raised more than Rs 1,000 crore already and the final closing of the Fund will be on 31 December 2023.