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AK Capital Edge Credit Opportunities

AUM ( cr) | Inc Date (1-May-2022)

Scheme Rating

IME Scheme Rating

4 of 5 stars

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.

IME Strategy Rating

4 of 5 stars

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.

AMC Rating

4 of 5 stars

AMC: AK Capital (click link for detailed AMC review)

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.

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

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: 31-Mar-25 | Inception Date: 01-May-22

Fund Managers

AK Mittal | 5-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.

Fee Structure

Fee Structure Fee
Fixed Fee Structure 1.5
Variable Fee Structures
Exit Fees

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