New fundFinancial Services
Northern Arc debt fund crosses ₹400 crore
By Abha Lohia · Editor ·
Northern Arc Capital: funding and every story →
First closeChennaiFounded 1989
- Northern Arc is a diversified financial services platform that routes credit to individuals and businesses across India
- Its asset management arm closed the first round of a new diversified debt fund with over ₹400 crore pledged
- The fund is its fifteenth private credit vehicle and aims for ₹1,500 crore, expandable to ₹2,000 crore
What happened
- Northern Arc Investment Managers announced the first close of its Diversified Debt Fund.
- Commitments top ₹400 crore from institutions, family offices and wealthy individuals.
- It is a Category II alternative investment fund (a pooled fund for sophisticated investors) focused on performing private credit.
- Target corpus is ₹1,500 crore, with an extra ₹500 crore option.
- The fund has a five-year tenure and aims for a 16% return.
Why it matters
- Shows steady appetite for private credit among Indian investors.
- It follows the maturity of the firm's impact fund, which backed 60 businesses.
- Fund is rated AA (SO) by a credit rating agency.
The business
- Northern Arc is a non-bank lender and financial services platform.
- Its asset management arm runs private credit funds.
In numbers
₹1,500 CrTarget corpus · 2026
What happens next
- Further closes towards the ₹1,500 crore target.
Words to know
- First close
- The first stage at which a fund formally accepts investor commitments.
The numbers around it
Financial Services in November 2026: 4 rounds with a disclosed amount, $166 million in all; the biggest was OnEMI (₹832 Cr). Every sector this year →
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