MUMBAI: Intellecap Group-promoted specialty debt financing firm IntelleGrow is looking to launch a Rs 200-crore debt fund by the end of this year.The firm, which operates as a nonbanking finance company ( NBFC ), provides debt for working capital needs of early-stage, high-risk small and medium enterprises, typically, in the social impact sector. "We are looking to set up a debt fund business.IntelleGrow will be the fund manager and sponsor for the fund," CEO Akbar Khan told ET. The fund, which will operate as another business under IntelleGrow, will function as a category-II alternative investment fund unlike the firm which is an NBFC.An Alternate Investment fund (AIF) is a Sebi-regulated investment vehicle, which aims to pool in funds for investment in the form of venture capital, private equity, hedge funds, and real estate investment trusts, among others. As an NBFC, IntelleGrow offers SMEs, working capital financing including invoice discounting, warehouse-receipt financing, and purchase order financing among others.Through the fund, IntelleGrow is looking to extend longer term loans to its clients. (Through the fund) we would offer more long-term (loans) ranging 24-48 months (with a possible) bullet payment structure," explained Khan.

Source: Economic Times July 13, 2017 05:03 UTC