• DBF II achieves final close with commitments of INR 2,200 crore
• DBF III launched with a target fund size of INR 2,500 crore plus green shoe
• Continues focus on extending flexible capital to mid-to-large Indian corporates
Mumbai, June 10th 2026: Vivriti Asset Management (VAM), one of India’s leading private credit fund asset managers, today announced the final close of its Diversified Bond Fund II (DBF II), alongside the launch of its next flagship private credit strategy, Diversified Bond Fund III (DBF III).
VAM completed full capital giveback of its first vintage of funds (launched in 2019-20) in 2024, and its second vintage (launched in 2021-22) have returned 85% of committed capital, aiming full giveback in 2026.
DBF II, part of VAM’s third vintage of credit funds, is a Category-II AIF, with tenor of five years from initial close (2024). It is a sector-agnostic private credit fund focused on providing growth and continuity capital to mid-sized Indian corporates with revenue range of INR 1,000–5,000 crore.
The fund has witnessed strong participation from institutional investors, insurance companies, large family offices, and ultra-high-net-worth individuals (UHNIs). It achieved a final close with INR 2,200 crore of commitment, reflecting sustained investor confidence in VAM’s origination network, underwriting and deal structuring approach, and consistent track record delivering portfolio outcomes in the mid-market private credit space.
To date, the fund has invested INR 1,470 crore across 24 transactions in sectors such as logistics, auto, steel, healthcare, road & port construction, commercial real estate, and financial services. It is expected to make 30+ investments at full drawdown, clocking gross yields of 15-16%.
Key investments where DBF II participated include:
• INR 175 crore in an auto component manufacturer for promoter stake consolidation
• INR 280 crore for the completion and operation of a multilateral agency–funded road asset
• INR 180 crore for the construction of a warehouse by a marquee developer
• INR 90 crore of growth capital for a diagnostic chain
• INR 180 crore for acquisition by a steel manufacturer toward backward integration
• INR 150 crore for a management buyout of a private equity investor’s stake in a leading media firm
• INR 200 crore for refinance of debt of a specialty steel manufacturer
• INR 175 crore in a financial services company specialising in MSME lending
Vivriti Asset Management has announced the launch of DBF III, its next private credit strategy with target fund size of INR 2,500 crore, and additional green-shoe option of INR 2,500 crore. While largely continuing with the strategy of DBF-II of extending flexible capital to mid-market firms, DBF III would target gross yield of 16–17%.
Soumendra Ghosh, Chief Investment Officer, Vivriti Asset Management, said:
“Private credit is becoming a key pillar of India’s financial ecosystem, helping channel savings and surplus back to the economy. Demand for capital is driven by promoters and management teams seeking flexible and tailored capital solutions to fund growth, consolidation, or navigate complex business situations—needs that traditional financing channels such as banks or public bond markets are often unable or unwilling to address due to regulatory constraints or limited risk appetite.
To its investors, private credit offers an attractive risk-adjusted proposition. Bilaterally negotiated transactions allow for careful assessment, deal structuring to protect downside, and close post-transaction tracking. Doing this through a pooled vehicle with due care to portfolio construction, has the potential to provide strong returns with limited volatility. This has resonated strongly with domestic private capital providers such as family offices, HNIs, insurance companies, and institutional investors looking to diversify portfolios while seeking volatility-adjusted returns.”
About Vivriti Asset Management
Vivriti Asset Management (VAM), set up in 2019, is a SEBI- and IFSCA-registered private credit-focused firm. It has invested over INR 11,000 crore since inception in ~125 firms and counts over 1,760 unique LPs. As of March 2026, it has successfully returned c.INR 3,850 crore (including capital and income) to clients.
VAM is part of Vivriti Group which specialises in providing credit to mid-market firms, managing assets of over INR 16,500 crore
For more details, visit www.vivritiamc.com
Media Contacts:
Resham Chhabra Singh | Senior Director & Group Head – Marketing & Communications | 9886190306 | [email protected]