Overview
- Name: Vivriti Asset Management Private Ltd
- Headquarters: Chennai, India
- Website: www.vivritiamc.com
- Investment focus: Financial inclusion, women, climate, jobs and employment
- Investment geographies: Asia
- Eligible LPs: Donor-advised funds, foundations, institutional investors, development finance institutions
Vivriti Asset Management is expanding a strategy that aims to enable access to capital for women and small businesses in India. The Vivriti India Retail Assets Fund, or VIRAF, provides financing to small non-bank financial institutions in underserved communities that have less than $500 million in assets under management. Many such small institutions struggle to raise capital because of investors’ risk perceptions. VIRAF buys their securitized loans in order to provide them with liquidity to make new loans to customers.
“Securitization as an instrument for providing debt financing to Indian non-bank financial institutions has a stellar credit track record of 30 years in India,” the firm states.
Vivriti is looking to raise $250 million for the fund. VIRAF uses a blended finance structure made up of first-loss equity and senior debt. It is the first of Vivriti’s investment vehicles that is open to international investors.
“In today’s macro environment, traditional sources of impact capital are shrinking rapidly, yet the development financing gap continues to widen,” Vivriti’s Nirav Gala told ImpactAlpha. The company’s goal with the strategy is to offer investors an “opportunity to build on the foundational work of development financing institutions [to drive] scalable solutions where they’re needed most.”
The firm has so far raised $75 million for the equity tranche from M&G Investments, and $90 million in debt from the IFC, British International Investment, Calvert Impact and the Austrian development bank OeEB.
This profile was written with AI assistance. All content is verified and edited by an ImpactAlpha editorial team member prior to publication.
This publication does not constitute investment advice and should not be relied on to make investment decisions.
