MUMBAI: The private credit market just got a new heavy-hitter, and it's not playing small. Incred Alternative Investments, the alt-assets arm of Incred Capital, has locked in over Rs 600 crore (around $70 million) for its maiden special situations credit vehicle—Incred Special Opportunities Fund-I (ISOF-I). That’s a strong opening act in a game where size, speed and swagger matter.
The announcement, made on 3 April 2025, signals a bullish start for ISOF-I, a Category II Alternative Investment Fund (AIF) with a base size of Rs 1,000 crore and an additional green shoe option of Rs 500 crore. And this is just the warm-up. More commitments are expected to roll in as the fund positions itself as the go-to for dislocated deals, distressed situations and debt moves with alpha built in.
"We are thrilled to announce securing commitments over Rs 600 crore in Incred Special Opportunities Fund (ISOF-I) reinforcing our commitment to delivering innovative private credit solutions. By leveraging Incred Group’s origination strengths and a seasoned underwriting team, we aim to generate 21-23 per cent returns. ISOF-I is well-positioned to capitalise on evolving market opportunities, such as dislocated secondary opportunities, cash flow mismatch situations in the economic cycle and flexible debt solutions, while delivering sustained value for our investors," said Incred Alternative Investments CIO - private credit, Saurabh Jhalaria.
Unlike safe-haven plays, ISOF-I is engineered for risk-adjusted hustle. It targets high-yield credit instruments across old economy sectors, backed by chunky collateral to keep the downside in check. This isn’t your run-of-the-mill fixed income—it’s a buffet of bold bets with buffers.
The fund's strategy? Market-agnostic, high-return, and highly nimble. Think of it as the financial equivalent of a Swiss Army knife: flexible enough to tackle cash flow crunches, special situations, and secondary market slip-ups. With regular distributions and a clear-eyed focus on generating meaningful alpha, the fund is built to woo both domestic and offshore LPs who like their risk spicy and their returns meaty.
Backed by a team seasoned in special situation investing and a proven track record in performing credit, Incred’s latest launch is more than just a fund—it’s a bet on India’s evolving credit ecosystem.
Time will tell how many more crores follow. But if ISOF-I keeps this momentum, it might just set the bar for how to launch a private credit rocket.
