Investment Philosophy
Northern Arc’s philosophy is defined by “impact-oriented yet returns-focused” investing. They operate on the premise that meaningful social impact—specifically expanding access to finance for the underserved—is sustainable only when it generates robust financial returns for investors.
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Financial Inclusion Focus: They invest in companies that demonstrate a track record of increasing the penetration of financial services among underbanked or unserved populations in India.
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Key Sectors: Their primary investment themes include:
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Microfinance
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Affordable Housing Finance
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Small Business (MSME) Loans
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Vehicle Finance
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Agri-business Loans
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Corporate Finance
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Risk-Adjusted Approach: They leverage the parent group’s deep sector expertise, proprietary data-backed risk models (such as “Nu Score”), and institutionalized due diligence processes to manage credit risk and ensure asset quality across market cycles.
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Strategic Flexibility: They offer diverse investment structures, including varying tenures (3.5 to 10 years) and liquidity preferences (regular coupons vs. bullet payments) to suit institutional and high-net-worth investor requirements.