Vivriti Emerging Corporate Bond Fund

• Sector Evaluation: Opportunity & outlook
• Sourcing and Desk Diligence: Key investment considerations; financial and operating parameters
• Detailed Due diligence and analysis: Understanding the business profile and risks through detailed promoter interactions, field visits and ecosystem checks
• Investor Communication and reporting: Monthly factsheets and quarterly valuation and portfolio updates
• Asset Management and Monitoring: Frequent management calls and field visits with portfolio companies
• Recommendation from Investment Committee: Detailed presentation to IC after which approval is received and transaction is closed

• No real-estate investments
• No investments in gems and jewellery businesses
• No investments in distressed entities, entities with history of default or overly-leveraged entities
• No investments in venture debt funding where investments are made in unproven business models and serves as a substitute for equity

The Fund will avoid making the following deal structuring calls:

• Loans against shares financing
• Promoter funding
• Equity take out
• One-time settlement deals

• B2B Market Place: Fixed and current assets – mostly receivables
• Health Care Equipment & Supplies: Current assets, Fixed assets (hospital equipment), Brand IP, Pledge of shares held by the promoter
• Agri Supply Chain Solution: Pari Passu charge on current assets and fixed assets (warehouses). Shared with other lenders
• Clean Energy: Exclusive security on entire project cash flows and project agreements
• Household Durables: Current assets – receivables from strong customers like Amazon / Flipkart
• Online Market Place: Current assets – receivables from strong customers like Amazon / Flipkart
• Financial Services: Charge over the underlying

The Investment Manager has ensured some of the tightest covenants in the market

Financial Covenants

• EBITDA to remain above pre-defined level
• Restriction on taking incremental borrowing during tenure of facility
• Debt to equity ratio tightly defined

Affirmative Covenants

• Individual Promoters shall remain on the Board of Directors as a director of the Issuer and the Holding Company until the Final Settlement Date

Negative Covenants

• Defining the shareholding pattern

Tight covenants ensure we can make a quick exit through early redemption since clauses are strictly defined in the term-sheet and obliges the company to fully redeem the debentures within a said time period

Typical End Use of Capital

• Enhanced working capital needs not supported by banks
• Capital Expenditure and Product Development
• Construction phase of infrastructure projects
• Asset acquisition not supported by banks