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UTI Asset Management Co. Ltd (UTI AMC) is keen to expand its alternative investments business and aims to raise its second private debt fund, the company said in a draft prospectus for its initial public offering.

The prospectus was filed with the Securities and Exchange Board of India on Thursday.

“We are also seeking to grow our alternative investment funds business, leveraging and augmenting the new team we hired at UTI Capital in 2017," UTI AMC said.

The asset manager said it plans to build upon the success of its debut private debt fund, UTI Structured Debt Opportunities Fund I, to start a new private debt fund, UTI Structured Debt Opportunities Fund II, to tap emerging opportunities to offer credit in situations that are not adequately serviced by banks and non-bank lenders.

The plan to launch a new private credit fund comes at a time when corporate India, especially midcap and smallcap companies, is struggling to raise credit as lenders cut back on lending post defaults at Infrastructure Leasing and Financial Services group and non-bank lender Dewan Housing Finance Corp. Ltd.

UTI AMC has committed around 180 crore for the new private debt fund, the prospectus showed. It had committed 160 crore to the first fund.

UTI AMC manages various alternative investment funds with total asset under management of about 1,350 crore. “We have one venture capital fund (the Ascent India Fund), which, as of 30 September 2019, had total closing AUM of 0.5 billion. We have three other alternative investment funds (the India Infrastructure Development Fund, Pragati India Fund, and UTI Structured Debt Opportunities Fund I) which, as of September 30, 2019, had total closing AUM of 4.0 billion, 0.9 billion and 8.1 billion, respectively," according to the prospectus.

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