Franklin India Credit AIF – Scheme I
Franklin India Credit AIF – Scheme I
KEY PORTFOLIO ATTRIBUTES #
| Year of Inception | |
| Number of Stocks | |
| Alpha (1Y) | |
| Beta (1Y) |
About Franklin Templeton Alternative Investments – India
Franklin Templeton (FT) is a USD 1.68 trn global manager with USD 250 bn+ in alternatives and a 28-year Indian fixed-income track-record. Scheme I extends this heritage to India’s “missing-middle” of BBB/A-rated financial-services borrowers whom banks and public bond markets often bypass.
Key People
Investment Objective
Provide stable, uncorrelated double-digit INR returns by building a diversified book of 10-15 senior-secured, cash-paying loans to well-run NBFCs, SFBs and specialty financiers, targeting 11 – 14 % security-level IRR.
Track-Record Context
FT’s Indian debt desk has funded 70 + NBFC/HFC names since 2015 with no ratedexposure principal impairments. Examples:
| Borrower | Rating at Entry | Outcome |
| Svatantra Microfin (2018) | A- / Stable | Assets ↑ 3×; all coupons on time |
| Vivriti Capital (2019) | A- / Stable | Assets ↑ 4.8×; follow-on equity rounds |
Past performance is not a guarantee of future results.
Investment Strategy
- Market Gap – “Missing Middle” → ~3,500 BBB/A companies (≈ 50 % of CRISIL universe) need efficient funding.
- Financial-Services Focus → NBFCs & specialty lenders where RBI guard-rails (CRAR, ALM, leverage) temper downside.
- Security Design → 1st-lien/pari-passu charge, escrowed cashflows, quarterly amortisation; single-issuer cap 10 % of corpus.
- Quick Deployment → Capital called and deployed within ≤ 3 months to minimise cash drag.
- Exit Pathways → Cash-flow sweeps, refinancing or monetisation inside a 3–4 yr median hold.
Investment Philosophy – C 3
FT evaluates every deal through Character – Cash-flows – Collateral, while the closeended AIF format forces time-bound asset monetisation and shields investors from daily-NAV volatility.
FACTS & FIGURES (Fund Terms)
| Item | Detail |
| Fund Structure | Trust – Category II AIF, close-ended, no interim exit |
| Target Corpus | ₹ 1,000 cr + ₹ 2,000 cr green-shoe |
| Tenor | 4 yrs from initial close + up to 2 yrs extensions |
| Sponsor Commitment | Franklin Templeton Group – USD 10 m |
| Management Fee
(tiered) |
< ₹10 cr: up to 1.50 % p.a. • ₹10-25 cr: 1.00 % • ≥ ₹25 cr:
0.75 % |
| Operating Expenses | Capped at 0.50 % p.a. over the Mgmt. fee |
| Minimum Commitment | ₹ 1 cr (regulatory) |
| Issuer Diversification | ≥ 10 issuers; ≤ ₹100 cr or 10 % per borrower |
| Investors Cap | 1,000 total investors allowed |
| Valuation | Independent NAV semi-annually |
Risk Mitigation & Governance
• CRAMEL NBFC framework – capital, resources, asset quality, management, earnings, liquidity.
• RBI’s new Non-Banking Stability Indicator tracks systemic health; metrics trending stronger.
• Multi-layer diligence & covenants plus FT’s board-level oversight, risk, legal and compliance pods ensure real-time monitoring.
Ideal Investor Profile
• Family offices & UHNWIs wanting steady 11–14 % INR yield with real-asset security.
• Global credit allocators seeking low-beta exposure to India’s financial-services boom.
• Institutions diversifying away from long-duration public bonds.
Do Not Simply Invest, Make Informed Decisions
WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION
Book
a call with our PMS AIF Specialists
