Newly closed fund to explore emerging sectors
With several large domestic and offshore capital providers joining as first-time institutional investors in the Rs.2,000 crore Trifecta Venture Debt Fund – IV, Trifecta Capital plans to invest its new capital pool in over 100 companies.
The first close of the Rs.2,000 crore Trifecta Venture Debt Fund – IV comes at a pivotal time and is well-positioned to capitalize on the growing potential of India’s venture debt ecosystem, Trifecta Capital said on 3 Feb.
Through Trifecta Venture Debt Fund – IV, the fund plans to invest in companies focusing on sectors spanning Fintech, Electric Vehicles, Consumer Products and Services, Logistics, New Age Manufacturing, B2B services, and Core Tech including Software and Hardware.
The fund will also actively explore opportunities in emerging sectors like renewable energy, climate, and sustainability, which are now soliciting mainstream capital and are poised for significant growth in the coming decade.
Notably, the firm has invested in Hygenco (a leading green hydrogen company), Euler, and Batterysmart and is evaluating other companies in these sunrise sectors.
Also, many of Trifecta Capital’s long-standing investors, partners who have supported the firm since its inception in 2015, have reaffirmed their commitment to the latest venture debt fund, continuing a nearly decade-long relationship.
The fund has garnered support from a multitude of capital allocators including insurance companies, leading family offices, and corporate treasuries.
“We are incredibly grateful to our investors, both new and old, for their steadfast support and trust in Trifecta Capital. Their commitment to our vision has been instrumental in our success, and we are excited to continue this journey with them as we embark on this new chapter with Venture Debt Fund – IV,” said Rahul Khanna, Managing Partner, Trifecta Capital.
“Investors have appreciated Trifecta Capital’s venture debt funds for their ability to protect capital through strong underwriting and innovative structuring, regular income distributions, consistency of returns, equity upside, and tax efficiency,” said Nilesh Kothari, Managing Partner, Trifecta Capital.
“The funds have been a key part of their fixed-income income allocations and continue to be attractive relative to other private credit opportunities,” he said.
Trifecta Capital launched India’s first venture debt fund in 2015, laying the foundation for this asset class by offering non-dilutive financing solutions for early and growth-stage new-economy companies that typically cannot access credit from traditional lenders like banks and NBFCs.
Trifecta Capital has previously successfully raised three venture debt funds since inception and invested over Rs.6,500 crore (US$875 million) till date. Fiinews.com
