Trifecta Capital closes second debt fund, tops target, deploys 88% of vehicle

Venture debt firm Trifecta Capital has announced the final close of its second fund at Rs 1,025 crore (around $140 million), slightly higher than the target of Rs 1,000 crore that included a greenshoe option of Rs 250 crore.

Trifecta said it has already deployed Rs 900 crore or about 88% of this vehicle across 38 companies. 

The firm said limited partners (LPs) included domestic and international institutional investors such as banks, insurance companies, development finance institutions, corporates, endowment funds, and large domestic family offices.

Apart from this, the venture debt investor said it will launch its third fund in the third quarter of this year, with a target to raise Rs 1,200-Rs 1,500 crore (around $165-206 million)

“Besides consistently beating the quarterly hurdle on returns for over five years across both funds, we have returned a significant portion of our first fund to investors,” managing partner Rahul Khanna said.

Trifecta, set up by Khanna and Nilesh Kothari in 2014, has funded firms across sectors and says its portfolio companies have raised $8.1 billion in equity.

Last week, it invested $6 million (around Rs 43.3 crore) in Arzooo, which helps physical retailers compete against e-commerce platforms. 

Recently, it invested in merchant-focused financial services company BharatPe. Other portfolio companies include Bigbasket, Pharmeasy, Blackbuck, NoBroker, and DeHaat.

In November last year, the venture debt firm hired a senior executive from global financial services giant Goldman Sachs. 

In January, TechCircle reported that the firm was set to witness the departures of two senior executives.