Modulus hits Rs 300 crore first close for Rs 2,000 crore India credit fund
What's the deal? Modulus Alternatives Investment ManagersDealroom has a profile for this one. Try Dealroom → has announced a first close of over Rs 300 crore for its third private credit fund, India Credit Opportunities Fund III (ICOF III). The SEBI-registered Category II Alternative Investment Fund targets a corpus of Rs 2,000 crore, including a Rs 1,000 crore greenshoe option.
Who's backing it? The close drew ultra-high net worth individuals, high net worth individuals, institutional investors, sponsors, and their affiliates.
What's the endgame? ICOF III will target performing credit opportunities in businesses with established models, sector tailwinds, and meaningful entry barriers. The fund emphasises senior-secured structures, covenant protection, and a diversified portfolio across high-growth sectors.
The track record: Founded in 2018, Modulus has facilitated more than Rs 3,250 crore across 32 investments, completed 21 exits — 20 ahead of maturity — and returned over Rs 1,900 crore to investors with zero credit losses. Its predecessor fund, ICOF II, is targeting a gross IRR of 16%+ with quarterly income distributions.
Why now? "We believe the next phase of growth will create increasing demand for flexible, structured capital that can address the needs of high-quality mid-market businesses beyond traditional financing avenues," said chief executive officer and chief investment officer Sandeep Agarwal.
The signal: Modulus is positioning against a widening credit gap in India's mid-market, where firms increasingly seek structured capital outside traditional bank financing. Investor appetite from both individuals and institutions points to growing confidence in India's performing private credit segment.
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