Vivriti Asset Management (VAM) has announced the final close of its Diversified Bond Fund II (DBF II) with commitments of ₹2,200 crore and has simultaneously launched Diversified Bond Fund III (DBF III), targeting ₹2,500 crore with an additional ₹2,500 crore green-shoe option.

DBF II, a Category II AIF focused on providing growth and continuity capital to mid-sized Indian corporates, has deployed ₹1,470 crore across 24 transactions spanning sectors such as logistics, healthcare, financial services, commercial real estate, steel, and infrastructure. The fund expects to complete over 30 investments at full deployment.

The successful close reflects growing investor interest in private credit, with participation from institutional investors, insurance companies, family offices, and UHNIs. Since inception, Vivriti Asset Management has invested over ₹11,000 crore across approximately 125 companies and has returned nearly ₹3,850 crore to investors as of March 2026.

Building on the success of DBF II, DBF III will continue the strategy of providing flexible capital solutions to mid-market Indian businesses seeking growth, acquisition, refinancing, and expansion capital. The launch underscores the increasing role of private credit as an alternative investment avenue for investors looking to diversify portfolios and access risk-adjusted returns.

Soumendra Ghosh, Chief Investment Officer, Vivriti Asset Management, said: “Private credit is becoming a key pillar of India’s financial ecosystem, helping channel savings and surplus back to the economy. Demand for capital is driven by promoters and management teams seeking flexible and tailored capital solutions to fund growth, consolidation, or navigate complex business situations—needs that traditional financing channels such as banks or public bond markets are often unable or unwilling to address due to regulatory constraints or limited risk appetite. To its investors, private credit offers an attractive risk-adjusted proposition. Bilaterally negotiated transactions allow for careful assessment, deal structuring to protect downside, and close post-transaction tracking. Doing this through a pooled vehicle with due care to portfolio construction, has the potential to provide strong returns with limited volatility. This has resonated strongly with domestic private capital providers such as family offices, HNIs, insurance companies, and institutional investors looking to diversify portfolios while seeking volatility-adjusted returns.”