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Anicut Capital Secures $11 Million for Private Credit Fund 3 via GIFT City Structure

Anicut Capital, a prominent alternative investment firm, has successfully raised $11 million in dollar-denominated investments for its Private Credit Fund 3 through the GIFT City Structure. This strategic move highlights the firm’s commitment to attracting international capital into the Indian market, particularly from institutional investors and high-net-worth individuals.

A Growing Investment Landscape

The recent funding marks a significant milestone for Anicut Capital, which has been actively expanding its investment portfolio. In September of the previous year, the firm secured Rs 50 crore from the Small Industries Development Bank of India (SIDBI) for its Anicut Equity Fund. This initial investment laid the groundwork for further growth and diversification.

  • Key Investments Made by Anicut Capital:
    • Earth Rhythm
    • Neemans
    • Wheelocity
    • The Ayurveda Experience
    • Blue Tokai Coffee
    • XYXX

Within just one year of operations, the Private Credit Fund 3 has already made investments in six companies, showcasing Anicut’s proactive approach to identifying and supporting promising ventures.

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The Role of GIFT City in Attracting Global Capital

The GIFT City (Gujarat International Finance Tec-City) structure is designed to facilitate international investments into India. By leveraging this framework, Anicut Capital aims to attract a diverse group of investors from key global markets, including the US, UK, Europe, and the Middle East.

  • Investment Structure Benefits:
    • Access to dollar-denominated investments.
    • Opportunities for institutional investors and family offices.
    • Enhanced regulatory framework under the International Financial Services Centres Authority (IFSC).

The IFSC was established by the Government of India to promote international financial services and enhance the ease of doing business in the country. This initiative is expected to bolster India’s position as a global investment destination.

Anicut’s Ambitious Fundraising Goals

The funds raised through the GIFT City Structure will contribute to the overall corpus of Rs 1,500 crore that Anicut Capital is currently raising for its third private credit fund. To date, Anicut has deployed Rs 3,200 crore across mid-sized enterprises since its inception, demonstrating a strong track record in the private credit space.

As the demand for alternative financing options continues to grow, Anicut Capital is well-positioned to capitalize on emerging opportunities in the market. The firm’s focus on mid-sized enterprises aligns with the increasing need for flexible funding solutions in a rapidly evolving economic landscape.

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