Godrej Asset Management Launches ₹2,000 Crore AIF to Fund Private Mid-Market Companies

Godrej Asset Management has launched its first Category-II Alternative Investment Fund (AIF), with a target corpus of ₹2,000 crore, according to a statement issued on August 18, 2026, as per The CNBC TV18 news report. The launch will be Godrej Industries’ entry into India’s private credit market. 

The fund has a base size of ₹1,000 crore and a greenshoe option of ₹1,000 crore. It will be raised through private placement from eligible investors, including high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs), family offices, and institutions. 

Investment Overview 

The fund is to follow a sector-agnostic performing credit strategy and lend to established private mid-market companies. It will look at businesses with a track record of operations and cash flows. 

The investments will be backed by hard collateral and covenant protections. Godrej Asset Management will assess potential deals based on business fundamentals, credit quality, and the borrower’s ability to repay. 

Funding For Businesses 

The fund will provide financing for business growth, acquisitions, refinancing, and working capital requirements. The investment team will directly originate deals. 

Godrej Asset Management said it would give preference to businesses where its team already has relationships. It also said an investment pipeline is in place for deploying the fund’s capital. 

Private Credit 

Private credit involves loans or structured financing provided directly to companies instead of through traditional bank lending. Businesses can use such funding for specific requirements, while investors take on the credit risk linked to the borrower. 

The launch adds asset management to Godrej Industries Group’s existing financial services operations, which include lending and wealth management. 

Management Comments 

Manish Shah, non-executive director at Godrej Asset Management and MD & CEO of Godrej Capital, said private credit was a natural extension of the group’s financial services business. 

Pavan Manchala, CIO for Private Credit at Godrej Asset Management, said the fund would focus on established businesses, with risk management considered while structuring investments. 

Read More: NFO Alert: Invesco Mutual Fund Launches Invesco India Pharma and Healthcare Fund! 

Conclusion 

The new AIF will focus on private mid-market companies and provide credit for business needs. It has a target corpus of ₹2,000 crore, including the greenshoe option. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.