INVESTMENT CASE STUDY
Private Credit: Growth Facility for a Mid-Market Enterprise
A structured private credit placement into a collateral-backed growth facility for a mid-market Indian enterprise, stepping in where traditional bank and NBFC lending has tightened.
At-a-Glance
The Opportunity
This placement gave our investors something conventional bank credit currently can't offer: access to mid-market, cash-generating businesses that tightened RBI-driven lending norms have pushed out of the traditional banking system. That gap is where this facility was positioned, structured around a defined collateral package: hard corporate assets, cash-flow escrows, and a personal promoter guarantee, each sized against the facility's full tenor. For our investors, that meant lending into a segment banks are currently underserving, with security structured to stand behind the credit for as long as the facility remained outstanding.
The gap itself is structural. Recent RBI-driven lending restrictions have tightened how traditional banks and NBFCs extend credit to mid-market corporates, even where the underlying business remains fundamentally sound and cash-generating. This has left enterprises with strong operating fundamentals but limited access to conventional bank facilities in need of growth capital sized and structured around their specific balance sheet, rather than a standardized lending template, precisely the space our investors' capital was deployed to fill.
Rationale
The default approach for a mid-market company facing tightened bank and NBFC lending is either accepting restrictive, standardized loan terms where available, or raising dilutive equity capital instead. This placement took a different structure: private credit collateralized specifically against the borrower's hard assets and cash flows, with a personal promoter guarantee layered on top, rather than either constraint. Structuring the facility this way gave the borrower growth capital without equity dilution, while giving the lender a collateral cover materially above the facility's principal.
19%
IRR realised on exit
339
Acres across two growth corridors
3
Land parcels held by one developer
1.77x
Multiple on capital invested
Mechanics
The facility was structured as an asset-backed private credit placement, with a multi-layered collateral package sized above the principal committed.
Hard Asset Collateral
A charge over the borrower's corporate assets underpins recovery value in a default scenario.
Cash-Flow Escrow
Designated operating cash flows are routed through an escrow mechanism to support scheduled debt servicing.
Personal Promoter Guarantee
A personal guarantee from the borrower's promoter adds a further layer of recourse and aligns promoter incentives with timely repayment.
Risk Factors: Managing the Downside
Track Record
This case study is shared for informational and illustrative purposes only. It describes a specific past transaction or structure and does not constitute investment advice, a recommendation, an offer, or a solicitation to invest in any security, scheme, or product. Cambridge Wealth (Baker Street Fintech Pvt. Ltd.) is a SEBI-registered Mutual Fund Distributor (ARN 172841) and does not provide investment advisory services; nothing in this document should be construed as personalized advice or a substitute for independent professional advice suited to your specific financial situation. This placement, where referenced, was made via PGIM Equity Growth Opportunities AIF. Details of the underlying structure, terms, risks, and eligibility criteria are governed solely by that vehicle's private placement memorandum, offer document, or scheme information document, which should be read in full before making any investment decision. Figures, dates, and outcomes described are historical and specific to this transaction. Past performance, whether of this transaction, this asset class, or any comparable strategy, is not indicative of, and does not guarantee, future results. Any market or industry data cited is drawn from third-party or publicly available sources believed to be reliable but not independently verified by Cambridge Wealth, and is subject to change. No representation is made that any investor will or is likely to achieve outcomes similar to those described. Investments of the type described carry risk, including but not limited to market, credit, liquidity, currency, and regulatory risk, and may result in partial or total loss of capital. This document does not account for the objectives, financial situation, or needs of any specific investor. Prospective investors should independently assess suitability and consult their own legal, tax, and financial advisors before proceeding.
This case study is shared for informational and illustrative purposes only. It describes a specific past transaction or structure and does not constitute investment advice, a recommendation, an offer, or a solicitation to invest in any security, scheme, or product. Cambridge Wealth (Baker Street Fintech Pvt. Ltd.) is a SEBI-registered Mutual Fund Distributor (ARN 172841) and does not provide investment advisory services; nothing in this document should be construed as personalized advice or a substitute for independent professional advice suited to your specific financial situation. This placement, where referenced, was made via Axis Structured Credit AIF – III. Details of the underlying structure, terms, risks, and eligibility criteria are governed solely by that vehicle's private placement memorandum, offer document, or scheme information document, which should be read in full before making any investment decision. Figures, dates, and outcomes described are historical and specific to this transaction. Past performance, whether of this transaction, this asset class, or any comparable strategy, is not indicative of, and does not guarantee, future results. Any market or industry data cited is drawn from third-party or publicly available sources believed to be reliable but not independently verified by Cambridge Wealth, and is subject to change. No representation is made that any investor will or is likely to achieve outcomes similar to those described. Investments of the type described carry risk, including but not limited to market, credit, liquidity, currency, and regulatory risk, and may result in partial or total loss of capital. This document does not account for the objectives, financial situation, or needs of any specific investor. Prospective investors should independently assess suitability and consult their own legal, tax, and financial advisors before proceeding.