Business
Demonstrable track record of providing sustainable investment solutions to investors
Credit
Real Estate
Multi Asset
PMS
Credit
SDOF SERIES
SDOF is a Proven, High Yield, Private Credit Strategy Managed by UTI
Investment Thesis of SDOF
Investment Process of SDOF
3 tier underwriting process
Cashflow based investing. Majority IRR serviced through operating cashflows resulting in regular distributions
Asset backed funding with cover in excess of investment amount. Usually seek to mortgage personal properties of Promoters for enhanced risk mitigation
Additional collateral like Share Pledge, Personal/Corporate Guarantees, Post Dated Cheques & Escrow mechanisms
SDOF’s internal due diligence is also aided by external vendors
Financial Diligence undertaken by reputed audit/accounting firms
Legal Diligence undertaken by reputed law firms
Property Valuation undertaken by reputed property valuers
SDOF I has returned more than 90% of the capital raised back to the investors,
SDOF II is currently under investment mode and SDOF III is under fund raising mode.
SDOF II is currently under investment mode and SDOF III is under fund raising mode.
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1. As per CRISIL, Indian corporate bond issuance in FY2020 were 16% of GDP, compared to 123% for USA or 34% for Singapore or 44.5% for Malaysia,
Further, large corporate and financial sector issuers contribute a bulk of the issuance. - 2. In 2020 Total Bank Credit ($1.52tn) was 16.8x Listed Privately Placed Corporate Bonds ($90bn).
- 3. According to FIMMDA, in Dec 2020, there was a 24bps credit spread for between an Bank and Corporate AAA 4yr bond.
- 4. Credit spread between AA and AAA 4yr corporate bond in Dec 2020 was 88bps but 225bps between A and AA.
- 5. For instance, banks are not allowed to lend for purposes such as purchase of shares, real estate or re-terming of existing bank debt.
Real Estate
Real estate is one of the largest asset classes in private capital and is witnessing a strong rebound in the Residential Space. Indian residential real estate has seen a sharp uptick in last 12 months. Sales in 2021 were up by 71% as compared to that in 2020. Further, lack of alternative capital provides an arbitrage opportunity. UTI Real Estate Opportunities Fund I (ROF I) is a residential real estate focused credit opportunities fund planned to be sponsored and managed by UTI Capital.
Multi Asset
MOF I is a bespoke strategy for large value investors which received SEBI approval in Feb 2022. As of March 31, 2022 total commitments were over INR 7,500 million. UTI welcomes partnerships with large value investors for designing and launching schemes as per their requirements.
PMS
UTI Capital Private Limited is a registered co-investment portfolio manager providing opportunities to its Fund Investors to invest in specific portfolio companies alongside the Fund itself. Such investments are made parallel to the traditional fund structure and are under the common control alongside the main fund.