Northern Arc Investment Managers has introduced its Finserv Fund, a Category II performing credit AIF, aiming to raise Rs. 1,500 crore, including a Rs. 500 crore green shoe option. The fund will invest in six sectors: MSME, affordable housing, vehicle finance, agriculture finance, microfinance, and consumer finance. CEO Ashish Mehrotra emphasized their zero-default track record and extensive partnership network, while Bhavdeep Bhatt highlighted the fund’s targeted returns of 14.00-14.50% XIRR over four years, with a six-month deployment period. As of June 30, 2024, Northern Arc manages an AUM of Rs. 15,000 crore across its funds.