The Private Credit strategy of
True North provides diversification,
scale and strong synergies, in line
with the firm’s investment philosophy
We partner with businesses who share our value system and entrepreneurs whose principles align with ours.
Our focus is on supporting middle-market companies which require bespoke financing solutions
Final close Dec 31, 2023
One full exit and one part exit
To be the preferred provider of private credit to middle market companies in India.
Create a business built on respect, research, relationships, diverse & inclusive culture and deliver risk-adjusted returns to our investors along with providing value to our partner companies.
Respect for our investee companies, our investors, our service providers, our employees & our regulators.
Relationships to build a business on strong and lasting relationships with a focus on long-term alignment rather than short-term gains.
Deep Research focussed on industries, companies, credit markets to provide agile and bespoke financing solutions to our partner companies
Cultivate a diverse, inclusive and creative culture We encourage constructive conflict where personal expression is encouraged and potential is nurtured.
Returns complete the cycle. At True North, we consistently strive to earn the best risk-adjusted returns to our investors.
We remain committed to achieving win-win deal terms, with early deal certainty and a swift conclusion. We also understand that we are a “Solution Capital” provider with a cost significantly above the traditional providers of Credit. We therefore allow timely exits if the Issuers/Borrowers so desire with the overall constraints of fund’s min holding requirements and MOIC.
We understand that Limited Partners repose a tremendous amount of trust when they commit capital into any of our funds. Our team is one of the most experienced Private Credit teams in India and takes its fiduciary responsibility very seriously. Above all, we strive to deliver consistent and top-quartile returns in a socially responsible manner.
For the first time, True North has raised domestic capital in a significant manner from close to 400+ distinct investors with participation from domestic financial institutions, family offices and HNIs. Being transparent and fair in our dealing with Limited Partners is sacrosanct for us and we will endeavour to apply the same yardstick to our wide array of domestic investors irrespective of the size of commitment they make in our fund.
We treat our teams with respect at True North and align “individual goals” with “organisation goals”. We encourage our team members to spend time for their professional and personal growth.
We work very closely with our wealth distribution partners. We respect our relationships with them and the trust that they bestow in us by introducing their investors to our fund.
Regulator landscape is fast changing as the AIF category continues to grow. We follow regulations in spirit and in form. If we were to err, we will promptly report the oversight to regulators.
We are overly cautious about losing principal in any deal & we aim to deliver consistent promised returns with minimum volatility.
We support businesses whose founders’ values align with ours. We understand that businesses go through cycles, and hitting a rough patch is a part of the process. Regardless of business upheavals, what matters to us is the founder’s approach towards treating their stakeholders.
Earnings quality and fair accounting practises rank above any other parameters.
We are a provider of ‘solution capital’ for our partner companies for tenor of around 3 years. Our fund focuses on collecting regular coupons and amortisations to the extent that is permitted by the borrowers cash flows without losing the appeal of flexible financing.
We strive to keep EV/debt >2 at all times basis a conservative EV estimation. This combined with strong hard collateral wherever possible helps us contain losses when things don’t go as per plan.
Diversification in our portfolio and maintaining strict, single position limits is a core to our risk management.