In order to diversify its business, UTI AMC has announced the launch of private debt fund, which comes under Category II of alternative investment funds (AIFs). The AMC has appointed Rohit Gulati as Managing Partner, Shaurya Arora as Partner and Sumit Khandelwal as Principal with effect from March 1, 2017 to establish new business vertical under UTI Capital.
At UTI Capital, the team of trio will establish a UTI-sponsored private debt fund to exploit several credit arbitrage opportunities that currently exist in the Indian market. Private debt is at the cusp of significant growth in India and diversification into that segment is an attractive opportunity for UTI AMC.
The objective of the proposed fund will be to deliver superior risk adjusted returns for their investors by identifying opportunities where customized structured credit solutions can be offered to corporate clients.
Of 40 odd AMCs, only a handful of them have launched AIFs. Currently, Indiabulls, Reliance, DSP Black Rock, Edelweiss, IIFL, IDFC, ICICI Prudential and HDFC are among the players who have ventured into the AIF space. A majority of them have launched category II AIFs, which are private equity funds, debt funds and fund of funds.