BlackSoil Deploys Rs 750 Crore Across 40 Companies Through Second Credit Fund

Rs 750 crore sounds like a big deployment for a fund that was built to hold Rs 500 crore. BlackSoil Asset Management has done exactly that with its second credit fund, and the math behind it is refreshingly simple: the same money, put to work more than once.

BlackSoil India Credit Fund II (BICF II) has deployed Rs 750 crore across 40 companies so far. That is 1.5 times the fund’s corpus of Rs 500 crore, achieved by recycling repayments and exits into fresh investments over the life of the fund.

Launched in 2023, fully drawn down

The fund was launched in October 2023 and closed at its target corpus of Rs 500 crore, with investor commitments fully drawn down. It has also completed 10 exits, a signal that the strategy is not just about writing cheques but also about getting money back.

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BICF II is a SEBI-registered Category II Alternative Investment Fund focused on providing performing credit to high-growth businesses. Its portfolio spans financial services, fintech, electric vehicles, healthcare, consumer, SaaS, deeptech and mobility.

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Where the money went

Consumer and internet businesses, including B2C and D2C companies, account for 35% of the fund’s allocations. Fintech and financial services make up 25%. Mobility, IoT, SaaS and deeptech together take another 25%, while healthcare and healthtech make up the remaining 15%.

Companies financed by the fund include Mintoak, Euler Motors, Curefoods, Bluestone, AgroStar and Progcap. The investors behind the fund are mostly family offices and high-net-worth individuals, with the majority of commitments coming from repeat investors.

What lies ahead

Chirag Shah, executive director at BlackSoil Asset Management, said the deployment reflects the firm’s approach of supporting businesses at different stages of growth. He added that BlackSoil plans to build a platform of thematic credit funds focused on specific market opportunities.

BlackSoil was established in 2016 to provide alternative credit to growing businesses, particularly companies that may not fit conventional banking norms. With the second fund’s deployment and exits done, the firm’s next chapter is clearly about going deeper into segments where traditional lenders still hesitate.