Northern Arc Investments announces closure of IFMR FImpact Fund

KOLKATA: Northern Arc Investments, one of the leading private debt fund managers from India, announced the closure of IFMR FImpact Investment Fund, the first fund from its investment platform.

This was the first private credit fund from India launched in 2015 focusing on the microfinance sector. The fund raised Rs 100 crore from banks, insurance companies and high networth individuals.

The fund’s investment portfolio comprised 13 companies, which in turn disbursed over 1 crore end-loans to the unbanked and underbanked segments.

The fund delivered net returns of over 15% to investors on maturity, despite significant external headwinds during its six-year tenure, which saw events like demonetization in November 2016 , the goods and services tax rollout in July 2017 and the non-banking finance sector crisis in 2018-19 which tightened their liquidity conditions and the Covid-19 pandemic.

This is the firms' second exit from the investment platform in the last two years.