AK Capital Edge Credit Opportunities
AK Capital | Debt | | AIFIME's View on AK Capital Edge Credit Opportunities
Strategy
Well Defined Conservative Debt Strategy
Investment Fund
At IME, we prefer a relatively more conservative approach to fixed-income investing, and we see AK Capital’s Edge Credit Opportunity Fund, as a good balance between higher yields and credit risk (targetting the performance credit opportunity space with a focus on BBB- and above). This can be considered by investors seeking to increase their fixed income yields.
Fund's Strategy View
The investment strategy has been clearly defined which includes a target Gross IRR of 13% and investments focused on financials & retail businesses, with a minimum credit rating of BBB- or higher. The fund also has clearly defined benchmarks around the revenues, networth and the vintage of the companies that it lends to.
Fund Performance
We refrain from evaluating the fund since it is yet to mature (less than 5 years).
IME's View on AK Capital
View on AMC
AK Capital is a Veteran debt player with experience of 3 decades. It is amongst the oldest listed merchant banker operating exclusively in Fixed Income and Debt Capital Markets with experience in managing credit risks and interest rate risks. AK Capital is run by the father-daughter duo of AK Mittal and Aditi Mittal, with the former being the founder. They bring decades of years of experience with a debt-specialized investment philosophy.
AMC's Pedigree
Amongst the leading managers for public issues of debt over the last 10 years.
AMC Team
AK Capital is run by the father-daughter duo of AK Mittal and Aditi Mittal, with the father being the founder. They bring decades of years of experience with a debt-specialized investment philosophy.
Investment Philosophy
Focussed on performing credit to generate optimum risk adjusted return. The firm looks at pass through cretificates, NCDs, Floating rate bonds, structured debt etc. With in-house deal sourcing capabilities and customized convenants, the AMC is well-equipped to manage debt funds.
Investment Strategy
The AK Capital Edge Credit Opportunities Fund is a Category II AIF specializing in fixed-income and structured credit investments. The fund focuses on securitized debt, non-convertible debentures (NCDs), and performing credit instruments, aiming to generate stable, risk-adjusted returns while ensuring capital preservation.
Core Investment Approach
Fixed-Income & Credit-Oriented Portfolio:
- Invests in Pass-Through Certificates (PTCs), NCDs, and structured debt instruments.
- Focus on high-rated corporate-backed entities and retail-focused businesses.
Targeted Credit Risk & Return Optimization:
- Aims for an XIRR of ~13.0% p.a. (pre-tax and pre-expenses).
- Invests in investment-grade-rated instruments (BBB- and higher), ensuring lower default risk.
Sector & Investment Focus:
- Prioritizes sectors like financial services, MSME lending, mortgage finance, vehicle financing, and technology-driven retail finance.
- Avoids high-risk sectors such as EPC, Gems & Jewellery, and speculative real estate.
Risk Management & Liquidity Strategy:
- Uses floating rate instruments to hedge against interest rate fluctuations.
- Monthly/quarterly income distribution, offering liquidity to investors.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| AK Capital Edge Credit Opportunities |
Performance as of: 30-Sep-25 | Inception Date: 01-May-22 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
AK Mittal | 4-star rated FM
Founder | 42 yrs Experience | 32 yrs at current firm
AK Mittal is the founder of AK Capital. He has over 28 years of experience in the financial Service Industry. Expertise in handling cross-functional activities in the Debt markets, Investment Advisory, Financial Services, Fund and fee-based activities. He started his career as an apprentice working on Direct Tax matters at a Delhi based law firm. He established his own Chartered Accountancy firm in Delhi in 1983 and then AK Capital in 1993.
Aditi Mittal | 4-star rated FM
Director | 20 yrs Experience | 20 yrs at current firm
Aditi Mittal is a director for the A.K. Group and a chartered accountant. She began working for the company when she was still in her late teens and has played a key role in directing the company’s growth plan for the past ten years.
