Fund 1: IFMR FImpact Investment Fund

First-of-its-kind microfinance focused debt fund

The microfinance sector in India is one of the largest financial access movements in the world. The sector in India has been constrained by the lack of access to a diversified source of growth capital, especially with a medium to long term tenor, which in turn can be attributed in part to a nascent finance market-place. The Fund identifies this market need as an opportunity to channel institutional domestic and offshore capital to the emerging asset class of Indian microfinance debt instruments.

The IFMR FImpact Investment Fund is a Category I Alternative Investment Fund (AIF) registered with SEBI as a Social Venture Fund. This Fund was established with an objective of facilitating development of the Indian microfinance sector by investing in a mix of medium to long term debt, whilst earning higher risk adjusted returns for investors.

Fund 1
IFMR FImpact Investment Fund
INR 100 Crs
5 years
December, 2014
CARE AA (AIF)

Sectors : Microfinance

Notable Milestones : Awarded “Most Innovative Product – India” at Asia Asset Management’s Best of the Best Awards (2014)

Fund 2: IFMR FImpact Long Term Multi Asset Class Fund

Multi-asset class high yield debt fund

The second fund launched by Northern Arc Investements Managers seeks to go beyond just microfinance in addressing the problem of low formal credit penetration in India.

The founding principle of the fund is to address the entire gamut of retail finance and make a significant contribution to promoting the penetration of formal financial services through a multi-sector strategy. Towards this, the Fund invests in microfinance, small business loan finance, affordable housing finance, commercial vehicle finance and agri-business finance sectors, providing growth capital to portfolio entities in the form senior secured bonds, unsecured bonds, subordinated debt, redeemable preference shares, commercial papers and other structured debt instruments.

Fund 2
IFMR FImpact Long Term Multi Asset Class Fund
INR 388 Crs
6 years
December, 2015
CARE AA- (AIF)

Sectors : Microfinance, Small Business Finance, Vehicle Finance, Affordable Housing Finance and Agri Finance

Notable Milestones : Awarded “Most Innovative Product – India” at Asia Asset Management’s Best of the Best Awards (2016)

Fund 3: IFMR FImpact Medium Term Microfinance Fund

Microfinance focused medium term debt fund

Leveraging the strong investor demand observed following the close of the microfinance focused fund, IFMR FImpact Investment Fund (Fund 1), the IFMR FImpact Medium Term Microfinance Fund (Fund 3) was launched to provide investors with a shorter investment horizon, such as NBFCs or high net-worth individuals, a platform to participate in the financial inclusion movement and earn a risk-adjusted return.

Fund 3
IFMR FImpact Medium Term Microfinance Fund
INR 99 Crs
3 years
June, 2016
CARE AA (AIF)

Sectors : Microfinance

Fund 4: IFMR Long Term Credit Fund

First-of-its-kind 10 year closed ended debt fund

The debt funding available to India’s financial inclusion sector is lopsided with institutions facing an incomplete capital market structure. Most of the debt funding, when available, is short term in nature and sourced from banks. For instance, while the microfinance sector in India has grown from about USD 500 million in 2007 to USD 10 billion in 2016, the amount of funding raised by microfinance institutions by issuing bonds in the corporate bond market is small.

The IFMR Long Term Credit Fund tackles this problem by tapping bond markets to meet long term funding requirements. This not only leads to diversification in sources of debt capital for our investee companies but our fund structure with 10-year close-ended tenure also allows us to provide differentiated debt capital that acts like catalytic growth capital. This also brings down the systemic risk in sectors where the fund invests in.

The Fund also provides a unique proposition to investors with a long-term investment horizon, such as insurance companies, who wish to purchase assets commensurate with their liabilities without comprising on yield, by providing a rare high-yield long-tenure non-sovereign debt managed product. The Fund seeks to achieve this by delivering premium returns over long term government securities providing an opportunity to invest in high-quality growth companies which cannot be accessed directly owing to the relatively underdeveloped bond market in India.

Fund 4
IFMR Long Term Credit Fund
INR 200 Crs*
10 years
March, 2017
CARE AA- (AIF)

Sectors : Microfinance, Small Business Finance, Vehicle Finance, Affordable Housing Finance, Agri Finance and Corporate Finance

Notable Milestones : Awarded “Asian Fund Launch of the Year (India)” at Asia Asset Management’s Best of the Best Awards (2018)

Fund 5: IFMR Medium Term Opportunities Fund

Multi asset class high yield debt fund

The IFMR Medium Term Opportunities Fund was established to address the additional investor demand for high yield corporate debt that continued to develop after the final close of the IFMR FImpact Long Term Multi Asset Class Fund (Fund 2) and to tap into the burgeoning market opportunity in our underlying focus sectors: microfinance, small business finance, vehicle finance, affordable housing finance, agri finance and corporate finance.

Fund 5
IFMR Medium Term Opportunities Fund
INR 250 Crs*
5 years
March, 2017
CARE AA- (AIF)

Sectors : Microfinance, Small Business Finance, Vehicle Finance, Affordable Housing Finance, Agri Finance and Corporate Finance

Fund 6: IFMR FImpact Income Builder Fund

Private wealth focused high yield debt fund

IFMR’s 6th Fund, the IFMR FImpact Income Builder Fund, has been designed specifically to deliver an attractive post tax returns to private wealth clients while investing in a diversified pool of securities including market linked debentures and senior secured debt. The Fund seeks to participate in sub-sectors within financial services – including microfinance, affordable housing, small business loans, commercial vehicle finance and agri-business finance – that cater to financially excluded households and enterprises.

Fund 6
IFMR FImpact Income Builder Fund
INR 150 Crs*
3.5 years
February, 2018
CARE AA- (AIF)

Sectors : Microfinance, Small Business Finance, Vehicle Finance, Affordable Housing Finance, Agri Finance and Corporate Finance

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