AVENDUS STRUCTURED CREDIT INVESTMENT TRUST

Fund Philosophy: Avendus Structured Credit Investment Trust

The investment philosophy of the Avendus Structured Credit Investment Trust is defined by “Precision Lending”—a specialized approach that provides tailored, high-yield debt capital to businesses at critical inflection points.

• Solution-Oriented Credit: The fund’s core philosophy is to provide “Agile Capital.” It focuses on situations where traditional bank financing is unavailable or too rigid, such as promoter financing for stake consolidation, acquisition financing for M&A, or bridge-to-IPO growth capital. By structuring debt around the specific cash-flow profiles of the borrower, the fund unlocks value for entrepreneurs while securing superior returns for its investors.

• Sector-Agnostic, Quality-Specific: While the fund invests across diverse sectors—including Pharma, Healthcare, Manufacturing, and Tech—its philosophy is strictly anchored in business quality. It targets high-performing companies with proven business models and sustainable cash flows. The team employs a “Game of Moats” lens to credit, ensuring that the underlying borrower has a competitive advantage that secures the repayment capability.

• Disciplined Risk Management: A key pillar of the philosophy is capital preservation. Every transaction is backed by robust collateral packages and structured with tight covenants to mitigate downside risk. The fund follows an institutionalized underwriting process, which has historically resulted in zero write-offs across its previous fund cycles.

• Alpha through Structuring: The philosophy asserts that “Alpha” in credit is earned through smart structuring rather than just high interest rates. By combining fixed coupons with equity-linked kickers or structured premiums, the fund aims to deliver gross portfolio IRRs in the range of 16–18%, providing a compelling risk-adjusted alternative to both traditional fixed income and volatile equity markets.