StopDownOpen the app

New fund · Financial Services

Modulus Alternatives achieves first close for credit fund

By ·

Modulus Alternatives Investment Managers logo
Date
Company
Modulus Alternatives Investment Managers
What it does
Private credit investment platform
Kind
New fund
Amount
Over Rs 300 crore
Stage
first close
Based in
Mumbai
Founded
2018
Sector
Financial Services

What they do

Modulus Alternatives is an independent boutique private credit platform that provides senior-secured financing to mid-market companies across India

What happened

The firm secured over Rs 300 crore in the first close of its third credit fund, targeting a total corpus of Rs 2,000 crore

Why it matters

The fund focuses on performing-credit opportunities and aims to provide capital to established businesses that require flexible financing beyond traditional…

The details

  • Modulus Alternatives reached the first close of its third credit fund, India Credit Opportunities Fund III, with over Rs 300 crore in commitments.
  • The fund attracted capital from ultra-high-net-worth individuals, institutional investors, and fund sponsors.
  • The total target size for the fund is Rs 1,000 crore, with a greenshoe option (an over-allotment option allowing the fund to accept additional capital) of another Rs 1,000 crore.
  • The fund is registered as a Category II AIF (Alternative Investment Fund) with the market regulator SEBI.
  • It aims to deliver a gross IRR (Internal Rate of Return, a measure of annual growth) of over 16% per annum.
  • The firm has facilitated over Rs 3,250 crore in investments across 32 transactions since its inception.

The bigger picture

  • The firm aims to address the significant credit gap faced by mid-market companies in India.
  • The Indian private credit market is estimated to be worth over $100 billion.
  • Modulus reports that its previous funds have maintained a record of zero credit losses to date.

About the business

  • Modulus Alternatives operates as an independent boutique private credit platform.
  • It focuses on senior-secured financing (debt that takes priority over other debts in case of default) for mid-market companies.
  • The firm utilizes covenant protections (legal agreements that restrict the borrower's actions) to ensure capital preservation.
  • It targets established businesses that demonstrate strong growth prospects and high entry barriers.
  • The firm has completed 21 exits across its previous funds, with 20 of those occurring before the scheduled maturity dates.

The deal

Type
fund

Investors

  • Centrum Group (existing) — Holds a 74% stake in Modulus Alternatives.
  • Alok Agarwal (existing) — Former CFO of Reliance Industries who holds a 26% stake in Modulus.

Founders

  • Sandeep Agarwal, CEO and CIO

Read it as a card in the app

Same day

All startup news on 26 August 2026 →