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AIF Knowledge chevron_right Cat II AIF chevron_right Structured Credit
Category II AIF

Structured Credit Funds

Engineering superior risk-adjusted yields through bespoke credit instruments backed by robust collateral structures and covenant protection.

Definition & Purpose

Structured Credit Funds deploy capital through bespoke debt instruments — NCDs, mezzanine debt, and structured notes — to corporate borrowers who require customized financing solutions beyond what traditional banks offer. These instruments are engineered with tailored repayment profiles, interest structures, and security packages to optimize risk-return outcomes.

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Instruments

NCD, Mezz, Notes

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Risk Profile

Medium

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Min. Investment

₹1 Crore

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Target Yield

12–18% p.a.

Instrument Toolkit

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Non-Convertible Debentures

Fixed-income instruments with defined coupon and maturity, secured by specific business assets or guarantees.

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Mezzanine Debt

Subordinated debt with equity-kicker features (warrants or options), filling the capital structure gap between senior debt and equity.

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Structured Notes

Bespoke instruments with embedded derivatives providing principal protection or enhanced yield through structured payoff profiles.

Credit Underwriting

Cash Flow Analysis

Stress-tested free cash flow models across multiple scenarios to validate debt serviceability.

Security Package

First charge on assets, promoter guarantees, and pledge of shares to secure lender position.

Covenant Structure

Financial covenants (DSCR, leverage ratios) with cure periods and step-up rates on breach.

Legal Documentation

Robust term sheets and debenture trust deeds drafted to SEBI and RBI regulatory standards.

Access Structured Credit Strategies

Speak with our credit specialists to understand current deployment opportunities and risk-return profiles.

Request Fund Prospectus