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A K Securitization & Credit Opportunities Fund II
Fund Snapshot
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Core Investment Strategy
- Core Strategy would be to identify, structure and invest in operating Mid-Size Retail and Retail focused businesses & high-rated corporate-backed entities with group comfort.
- Providing growth debt capital, which is revenue accretive.
- Securitized Debt Instruments to optimize risk-adjusted returns & provide regular payouts to Investors.
- Utilizing A. K. Capital Group’s structuring expertise to take interest rate roll-down calls to create opportunities to generate tax-efficient long-term capital gains.
Product Weightage
- Portfolio expected to have 15 to 20 investments, with average exposure of 5% to 7% per investment
- Not more than 15% in one investee company
Typical Tenure
- Tenure of investments is to be aligned with Fund tenure for majority of fund investments
- Strategically, a portion of fund investments may have longer tenure to benefit from interest rate roll-down strategy to achieve tax efficiency
Why Invest in Performing Credit Funds Now?
- Interest Rates are at Peak; Softening process hasstarted
- Sound Corporate Credit Health
- Attractive Credit Spread over G-Secs
- Net returns to the Investor between 11.75% and 12.50%
Build long-term wealth with AltPort’s disciplined investment strategies designed for consistent, risk-balanced returns.
About AK Capital Group
- Amongst the Top Lead Managers for Public Issues of Debt during last 5 Financial Years ended Mar 2024 (Source: Prime Database) and No. 1 Lead Manager for Public Issue of Bonds over last 10 years
- Managed securitization transactions of approx. Rs. 6,825 crs across multiple asset classes during 36 months ended Mar-24
- Managed Private Placement of Debt of approx. Rs. 2.99 trillion during FY24 (Source: Prime Database), translating into market share of approx. 43.4%
- Managed 137 assignments of Public Issue of Debt of approx. Rs. 2.04 trillion till Mar-24 (Source: Prime Database) for the country’s premier public and private sector companies.
- Strong Risk Management resulting in negligible NPA in AK Capital Finance Limited (AKCF) since several years
- Amongst the most vintage, listed, fixed-income-focused Investment banking groups operating since 1998.
- Managed 2,048 assignments of private placement of debt aggregating to approx. Rs. 21.25 trillion during the past 12 years till Mar-24. (Source: Prime Database)
- AKCF has been managing a current AUM of more than Rs. 2,600 Cr, of which approx. 81% of AUM (as of 31-Dec-23) is in the form of marketable credit. Group has made consistent profits on portfolio churn by managing interest rate risks and via effective exit strategies.
- AKCFL rating: CARE “AA-” (Stable) in Mar-24 by CARE Ratings on Standalone basis
- One of India’s few NBFCs to have received prestigious TREPS (earlier known as CBLO – Collateralized Borrowing and Lending Obligations) membership given by The Clearing Corporation of India Limited (CCIL)
Awards
India Bond House of the Year 2018
Marked our presence along with other Asian countries’ bond houses like HSBC, Credit Suisse, CIMB, ANZ & Bank of China
India Bond House of the Year 2023
Marked our presence along with other Asian countries’ bond houses like ANZ, Citi Securities, CIMB, DBS Bank, Kasikornbank
Key Strengths
Deal Sourcing
- Strong in-house Deal Sourcing Capability—A. K. Capital Group is a Category 1 Merchant Banker & one of the largest arranger of fixed income instruments
- Assisting in creating a highly Diversified Portfolio
- Leveraging Strong Network and market presence for early access to cherry-picked transactions
- Access to Co-Investment opportunities in larger deals
- Dedicated team of Professionals covering clients with sectoral expertise
Structuring and Underwriting
- Credit Evaluation / Structuring based on detailed financial analysis, including group debt and group financial obligations
- Use of external databases for credit evaluation
- Customized covenants for every transaction
- Robust Pool selection criteria and structuring with adequate credit enhancements for PTC transactions
- Strong Underwriting Capabilities demonstrated by negligible NPA at A. K. Capital Group since many years
Monitoring and Value Addition
- Close monitoring of various Conditions Subsequent and Transaction specific Covenants, Credit Ratings, Financial Health, Liquidity Position, Leverage, etc.
- Regular evaluation of Security / Receivables
- Strong Market Presence, engagement with Investors, Issuer and their Peers and quarterly monitoring of
- covenants helpsin identifying Early Warning Signals
- Track record of maintaining negligible NPA NBFC book with the current AUM of more than Rs. 2,700 Cr for over 10 years
Managing Timely Exits
- Strong relationships with varied client base of Institutions, HNIs, Family Offices, Foreign Investors, Leading Corporates, etc., help in downselling of investments in secondary market transactions
- Structuring of well-defined exit strategy at the time of entry/investment
- Track record of consistent profitability on portfolio churns (comprising a majority of fixed-income instruments) while managing interest rate risks
- Strong Investment Banking experience assists in refinancing of debt at Issuer level
Successful Past Experience of Managing Interest Rate Risk – Track record of delivering consistent profits on portfolio churn by effectively managing interest rate risk over several interest rate cycles.
Distribution Summary
The Fund commenced monthly distributions to its investors from February 2024 onwards. The Fund made its eighteenth income distribution (post recovery of Fund expenses) to its investors in May 2025, and has cumulatively distributed 16.13% of Capital Contribution.
Note:
- No Distribution / Placement expenses or Carried Interest have been charged by the Fund
- The Fund has commenced monthly distributionsfrom third month (from First Close) i.e. Feb-24 onwards. Thus, the new investors willstartreceiving monthly distributionsfrom the succeeding month of their allotment.
Stop chasing returns—start building them strategically. We help you invest with research & measurable goals for long-term growth that feels confident and calculated.
Model Portfolio Construct
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Indicative Management Fees (Regular Plan)
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Key achievements
- Current estimated lifetime yield of 14.4%* p.a. v/s guidance of XIRR of 14.0% p.a. (pre-tax and pre-expenses) at the time of fund launch. Already achieved an outperformance of nearly 40 bps.
- Commenced monthly income distribution from February 2024 onwards, within 3 months of First Close
- Already 6 instances of upgrade in company rating (by at least one notch) / rating outlook since the time of investment.
- Already declared First Close in December 2023, within a period of approx. 2 months from Fund launch. Fund open for additional commitments. Deployed 100% of allotted capital commitments across 18 investee companies, within 14 months of First Close
AltPort: Investing with Precision and Purpose
At AltPort, we don’t chase trends—we build strategies. Every fund is chosen through a process-driven approach that values clarity, discipline, and data. From due diligence to portfolio design, our team ensures your investments align with real financial goals. Partner with AltPort and experience the confidence that comes from structure, skill, and sustainable performance. Your journey toward smarter investing begins here.
