Exclusive Webinar on Private Credit – Fixed Income AIF by Northern ARC

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Welcome to AIF & PMS Experts India Pvt. Ltd.

An exclusive webinar has recently been held on YouTube. In this interesting webinar, Mr Vikas Agrawal hosted the CEO of the Northern ARC Investment Managers, Mr Ravi Vukkadala. In this webinar, Mr Vikas is the Founder and CEO of AIF & PMS Experts India Pvt. Ltd. He tried to read our guest’s mind and churn out knowledge regarding the market and best investment opportunities.

Webinar Overview

  • Previously, most people kept their money in bank accounts as savings for years. But, the time has changed. Nowadays, people have many alternatives to investing in alternate investments and debt equities.
  • Large capital providers often invest hundreds of crores of rupees in mutual funds and debt. Fixed income contains a large portion of that.
  • Our guest explains how several types of financial institutions fund big companies. He mentioned how fixed income strategy comes into the context.
  • He clearly distinguished between mutual fund schemes and fixed income schemes. He put his knowledge to explain why investors should look forward to fixed income with their investment approach.
  • Mr Ravi mentioned that the equity market has now reached 90 to 93 billion dollars, where the fixed income portion is almost one and half times or nearly more than 1.7 times. It is more than the total size of the equity exposure.
  • In the conversation with these personalities, a few critical world economic crises came into discussion. Mr Ravi told their viewers how those happened and what things the world learned from those incidents. He said how it affected the economy of the U.S. and what measures they have taken since then.
  • They talked slightly about the ongoing world inflation.
  • He highlighted the difference in the circumstances of printing currency notes between developed and developing nations.
  • Our honourable guest explained the strategy and investment goal of the fixed income funds and how this fund could provide great returns.

About AIF & PMS Experts India

We have faith in India’s growth story. We recognise the significance of proper investments as a driver of economic growth. And our Founder, Mr Vikas Agrawal, who is passionate about decoding the strengths and untangling business and business firms’ management weaknesses, exemplifies this belief.

At AIF & PMS Experts, we have a lofty goal of fostering trust in governance, maintaining transparency, and facilitating our clients’ long-term wealth creation. Our numerous products, analytics, and methods are critical to our firm and help us achieve our goals.

Fund Manager Profile

Ravi is Northern Arc Investments’ CEO and has over 16 years of experience in credit investing, risk management, and fund management. Before joining Northern Arc, he was a member of Invesco Mutual Fund’s Fixed Income investment team, where he was in charge of credit and rate analysis. He has also worked in the capital markets for Bharti AXA Investment Managers, J.M. Financial Ltd, and Merrill Lynch.

Ravi holds a Post Graduate Diploma in Finance from NMIMS (Mumbai), a Masters in Management & Information Systems from Virginia Tech (U.S.), and a Bachelor’s of Chemical Engineering from the University of Mumbai.

Investment Philosophy

Northern ARC Investment Managers has an investment process they have used to achieve their success and meet all their future goals. The philosophy is as follows.

  • Entity Identification: Northern Arc Investment has a few well-stated and defined eligibility and selection criteria during the selection of possibilities. They also have a well-honed investment portfolio that they adhere to.
  • Pre-Investment Evaluation: Northern ARC Investment Managers has a multi-dimensional evaluation framework. Operational and financial output, strategy and business plan, governance, and leadership ability are all factors.
  • Detailed Due Diligence: They regularly meet with senior and head management from all departments. They also evaluate the procedures used at branch offices and corporate entities.
  • Credit Appraisal Documentation: They prepare due diligence reports based on credit analysis. Northern Arc Investments is always on the lookout for operational and financial projections.
  • I.C. Approval: The team submits the credit appraisal report and term sheet to the investment committee for approval. Northern Arc Investments negotiated and signed the final term sheets to complete the investment process.
  • Post-investment Monitoring: Following the investment decision, companies undergo mini diligence twice a year for two to three days. Northern Arc Investments collects and analyses data, creates and collects feedback on processes, and shares it with investee companies.

What exactly is the Fixed Income strategy?

A fixed-income strategy is an investment that pays fixed periodic interest payments and eventually returns the principal at maturity. Unlike variable-income securities, whose payments vary based on underlying measures, such as short-term interest rates, fixed-income securities’ payments are known in advance.

Fixed Income assets are debt instruments that pay a fixed interest rate to investors in the form of dividend payments. Interest is typically paid semiannually, with the principal invested returning to the investor at maturity. Bonds are the most commonly used type of fixed-income security. Companies raise funds by selling fixed-income securities to investors.

Track Record And Investor Base

Northern ARC has an excellent track record over eight years and has successfully managed 500+ investors.

They have several investor bases in India and overseas. They offer their services to leading banks, development financial institutions, insurance companies, family offices, HNIs and Ultra HNIs, and corporate treasuries. 

Northern ARC Money Alpha Fund (Open Ended) Opportunity

  • It invests in both credit and liquid securities.
  • Attempts to generate alpha by investing in ultra-short-term mutual funds.
  • The minimum investment: INR 1 Cr.

 Northern ARC Emerging Corporate Bond Fund (Closed Ended) Opportunity

  • They invest in securities of high-growth new-age companies that provide investors with high risk-adjusted returns.
  • Minimum investment requirement: INR 1 Cr.

Webinar Key Points

  • Every investor should have a sufficient risk appetite. Based on their appetite, they should invest in funds.
  • Investment for a short time can be possible with category three investment products, which can provide a great return on investment. It also provides freedom to investors.
  • They also seek customised portfolios for investment and a great return on their investment.
  • Every product is not suitable for everybody. Hence, Northern ARC Investment Managers’ ability to structure and innovate a fund has always been there.

Parting Note

The market always goes through depression, ups and downs. But the correct opportunity for investment always comes. Hence, enthusiastic investors should be patient and invest properly with a proper mindset. AIF & PMS Experts India Pvt. Ltd. can help investors with their years of expertise. Enthusiastic investors can mail us at [email protected] or visit our page https://aifpms.com/contact/

They can also call us at 8368586435 or 1800 210 1995.

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