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Arka Credit Fund

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Category AIF Category II
Company Arka Investment Advisory Services Private Limited
Fund Managers Vimal Bhandari
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About Company

Arka Investment Advisory Services Private Limited

Arka Investment Advisory Services Private Limited (AIASPL) is a specialized asset management firm that acts as the dedicated investment manager for the alternative investment fund business of the Arka platform. Backed by Arka Financial Holdings and the legacy of Kirloskar Oil Engines Limited, the firm blends manufacturing ecosystem insight with deep institutional credit expertise. AIASPL is committed to designing high-governance investment vehicles that provide corporate clients with bespoke credit architectures while offering sophisticated institutional allocators transparent access to premium, risk-mitigated private market returns.

Fund Snapshot

Parameter Details
Fund Name Arka Credit Fund (Scheme: Arka Credit Fund I)
Fund Type Private Credit / Performing Credit Fund
AIF Category Category II AIF (SEBI-Registered)
Structure Close-Ended
Target Corpus ₹250 Crore (with a ₹50 Crore green-shoe option)
Investment Strategy Structured debt solutions for mid-market corporates
Fund Tenure 4.5 Years
Target Return Profile $14\text{--}16\%$ Target Gross IRR
Average Ticket Size ₹30 – ₹50 Crore per investment

Fund Purpose

The Arka Credit Fund is established to fulfill the growing demand for structured, non-dilutive capital among mid-market corporates and conglomerates in India. Operating as a sector-agnostic performing credit vehicle, the fund bridges the gap left by traditional banking systems by providing flexible financing solutions for growth, working capital, and corporate restructuring. Its core mission is to generate consistent, risk-adjusted yield for institutional investors, family offices, and ultra-high-net-worth individuals while driving real economic growth across key mid-market operational ecosystems.

Fund Philosophy

Mid-Market Credit Specialization

We focus exclusively on mid-market companies backed by credible, high-integrity promoters. This segment represents the engine of economic expansion but remains structurally underserved by conventional commercial banks and larger credit institutions.

Sector-Agnostic Diversification

Risk is best managed by avoiding concentration. The fund actively spreads its allocations across a diverse array of economic sectors, including manufacturing, logistics, transportation, real estate, financial services, and sustainable waste management platforms.

Structured Downside Protection

Capital preservation is hardcoded into every transaction framework. Every credit facility is customized with senior secured underwriting, asset-backed collateral packages, robust cash-flow monitoring systems, and tight financial covenants to insulate investor capital from underlying volatility.

Leverage of NBFC Ecosystem

We maximize operational intelligence through our wider group platform. By utilizing the deep industrial network, underwriting history, and market presence of our affiliate NBFC, Arka Fincap, the fund gains superior deal sourcing capabilities and advanced credit assessment workflows.

Yield Optimization & Monetization

We structure transactions to optimize the velocity of capital and predictable payouts. Through a combination of regular coupon collections, scheduled principal amortizations, and performance-linked enhancers, the fund ensures steady cash monetization throughout its defined 4.5-year investment lifecycle.

Section: Fund Leadership
Meet the Fund Managers

Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.

Vimal Bhandari

Vimal Bhandari serves as the Executive Vice Chairman and CEO of Arka Fincap Limited, where he oversees the strategic integration and commercial scaling of the broader Arka financial services platform, including its private credit asset management arms. With over three decades of distinguished leadership in institutional financial services, corporate governance, and investment banking, Vimal specializes in credit risk management and macroeconomic scaling. Under his executive direction, the platform continues to expand its market footprint, leveraging strong institutional origination networks to deliver structured solutions across the alternative performing credit landscape.

Section: Help & Support
Frequently Asked Questions

Find answers to common questions about fund investments, performance, portfolio strategy, and investor services.

What is the core investment mandate of the Arka Credit Fund? +

The fund is engineered as a performing credit vehicle, investing strictly in secured, structured debt instruments issued by mid-market Indian enterprises to capture high risk-adjusted yields.

What regulatory framework governs this investment vehicle? +

The fund operates as a SEBI-registered Category II Alternative Investment Fund (AIF), ensuring compliance with standardized transparency, asset valuation, and fiduciary reporting regulations.

What is the total corpus and structural tenure of Arka Credit Fund I? +

Arka Credit Fund I successfully achieved its final closing on a baseline target corpus of ₹250 Crore (with an additional ₹50 Crore green-shoe allowance) under a structured close-ended tenure of 4.5 years.

How diversified is the current investment portfolio? +

The portfolio is highly diversified and sector-agnostic, having already deployed strategic credit across essential economic verticals including real estate, steel manufacturing, logistics, financial services, and environmental waste management.

Who are the primary capital contributors to the fund? +

The fund’s capital architecture is backed by a substantial ₹55 Crore sponsor commitment from the parent group alongside allocations from marquee ultra-high-net-worth individuals (UHNIs), domestic family offices, and corporate treasuries.

Section: Contact Us
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