Creation Investments Capital Management, a Chicago-based impact investor, has launched its first $100 million debt fund focusing on non-bank financial companies in the country, according to a release.
The alternative investor, focused on financial services in developing markets, also announced the opening of its first India office in Bengaluru and the appointment of Remika Agarwal as vice-president and country head. Agarwal was head of structured finance at Northern Arc Capital.
The fund seeks to cater to companies in segments such as micro-lending, affordable housing, vehicle loans, small and medium-enterprise lending (SMEs), and education finance.
Investors in Creation’s earlier private equity funds, including family offices, have indicated interest in committing capital to the firm’s initial debt fund, the release said.
Currently, Creation’s portfolio companies serve more than 23 million entrepreneurs in India.
Over the past 10 years, the firm has invested more than $300 million in multiple Indian companies specialising in microfinance, SMEs, fintech, payments, agri-warehousing and finance and other businesses.
Some of its investments in the country include Vivriti Capital, Fusion Microfinance, Sonata Finance, and OfBusiness.
India is Creation’s single largest destination for impact investments in companies providing access to capital to unbanked and underbanked families and businesses.
Agarwal said, “Our portfolio companies, which have withstood the shocks of the Covid-19 pandemic and earlier demonetisation in India, remain strong. We continue to seek investments in companies that have robust business models, strong management teams, and sound environmental, social, and corporate governance credentials.”
Agarwal brings more than 14 years of experience across multiple financial service areas to Creation. Previously, she was head of structured finance and products at a large non-bank financial company in India and vice-president for over a decade with a leading Indian rating agency.
Agarwal plans to hire up to two associates in 2021 to help manage the firm’s growing portfolio of Indian companies.
As of December 31, 2020, the firm managed more than $725 million in private funds and other vehicles on behalf of individuals, family offices and institutional investors.