JM Financial AMC launches second ₹1,000 crore credit Alternative Investment Fund

JM Financial Asset Management Ltd on Monday announced the launch of its second credit-focused Alternative Investment Fund (AIF), JM Financial Select Credit Fund II (SCF II), a Category II AIF with a base corpus of ₹1,000 crore and a greenshoe option of another ₹1,000 crore. 

The launch marks another step in the firm’s expanding alternative investment platform. SCF II will focus on performing credit opportunities across sectors, targeting companies with stable cash flows, strong promoter track records, and robust business fundamentals. 

The fund aims to provide structured credit solutions to high-quality businesses while offering investors attractive risk-adjusted return opportunities.  

“India’s private credit market is evolving rapidly as companies increasingly seek flexible and tailored financing solutions beyond traditional sources of capital,” said Amitabh Mohanty. “The launch of our second Performing Credit Fund reflects our continued commitment to building a diversified alternatives platform that can address the changing capital requirements of businesses while offering attractive risk-adjusted opportunities for investors,” he added. 

Mohanty said the fund would focus on deploying capital with strong underwriting discipline, governance standards, and structural safeguards to ensure capital protection while generating returns. 

The strategy will be led by Amit Dharod, who joined the firm last year from Ascertis Credit, formerly known as BPEA Credit. Dharod has over 25 years of experience and has previously worked with institutions including ICICI Bank, GE Capital, and Royal Bank of Scotland. 

The fund plans to leverage the broader JM Financial Group ecosystem across investment banking, capital markets, and credit businesses to source differentiated deals and strengthen origination capabilities. 

The launch comes at a time when India’s AIF industry continues to witness strong growth. According to data from Securities and Exchange Board of India (Sebi), total commitments in the AIF industry stood at ₹15.74 lakh crore as of December 2025. Category II AIFs, including private credit funds, accounted for the largest share at ₹11.64 lakh crore, reflecting growing investor appetite for private market and structured credit opportunities. 

Against this backdrop, JM Financial AMC said the new fund seeks to capitalise on rising investor interest in private credit strategies while addressing the evolving financing needs of Indian businesses.