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Vivriti Wealth Optimizer Fund

IME AIF Rating: 5-star | Open for subscription: Yes | AIF Category: High Yield Debt
  • Invest in superior risk-adjusted credit in A-rated corporates: This category offers superior yields to typical debt securities held by debt mutual funds, while have substantially lower credit risk (average default rate of below 1.5% in this category) than the lower-rated papers typically in other high-yield AIFs
  • High tax-efficiency: driven by a considerable investment in MLD’s (market-linked debentures), that benefit from substantially lower capital gains taxation. The effective tax rate falls to ~22.8% (vs 42.7% for investors in the highest tax slab)
  • 10% First-loss protection: the AIF is structured in a manner, that provides a protection of 10% of the portfolio against defaults. Crisil has rated the AIF as CRISIL AA+(SO) for principal protection. The fund is structured in such a manner that principal is protected in a scenario where even 30% of the portfolio company defaults
  • Credible Investment Team & AMC: Large synergies in terms of deal sourcing and analysis from the group companies – Vivtri Capital (NBFC) & Cred Avenue (India’s largest digital marketplace for debt securities)
  • Risk of spill-over for NBFC credit issues: These exists the risk of credit-risk of the AIF being used to transfer credit risk away from the NBFC books. A strong investment process, that includes an independent senior credit professional with veto rights on all investment decisions, along with clearly laid out processes requiring board-level approvals for any such transfers does substantially help reduce (but not eliminate) this risk
  • An attractive investment opportunity: Vivriti Wealth Optimiser fund is an attractive investment opportunity, for investors seeking to earn higher post-tax yields than that offered by debt mutual funds without taking on a high level of incremental risk. The combination of investing in an attractive market segment (A-rated corporates), via a tax-efficient structure (MLD’s) and first-loss protection, make this an appealing high-yield option for investors

AMC

Leading Debt AMC: Vivriti AMC has scaled it's fund business to over 4000 cr of commitements, and has successfully raised 2 vintages of funds (with the first vintage completely divested as well). A combination of a strong team, focus on the performing credit space (relatively lower risk-reward than other high-yield AIFs) and strong pedigree of the group in the debt space (primarily linked to the CredAvenue platform), makes this an attractive AMC in the Debt AIF space.

AMC Rating

4 of 5 stars

AMC Pedigree

5 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

5 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

4 of 5 stars