The capital has been secured from a mix of domestic and offshore investors, reflecting growing interest in India’s private credit space, especially for funds with a proven performance track record.

According to a press release, ISOF-I is a Category II Alternative Investment Fund with a targeted base size of ₹1,000 crore and a green shoe option of ₹500 crore.The fund aims to deliver market-agnostic, risk-adjusted returns with regular distributions. It focusses on old economy sectors, offering a strong collateral-backed portfolio and higher return expectations compared to traditional performing credit strategies.

The investment strategy is built around flexibility and downside protection. It is being managed by a team experienced in credit and special situations, aiming to tap into dislocated secondary markets and companies facing cash flow mismatches.

Saurabh Jhalaria, Chief Investment Officer – Private Credit, stated that the fund is targeting 21-23% returns by leveraging the group’s origination capabilities and underwriting expertise. He added that ISOF-I is well-positioned to capture emerging opportunities across various phases of the economic cycle.

The fundraising success adds to InCred Group’s broader platform, which includes InCred Finance, InCred Capital, and InCred Money—serving lending, institutional asset management, and retail wealth tech, respectively.

Note-InCred Alternative Investments already manages two successful performing credit funds and is now expanding its offerings through ISOF-I.