Reliance AIF Asset Management Co. Ltd is in the process of raising its inaugural credit fund, aiming to secure Rs1,000 crore for the Reliance Yield Opportunity AIF Scheme 1, according to news reports citing company executives.  

This unit of Reliance Nippon Life Asset Management Ltd anticipates achieving its first close by March, which marks the initial stage of fund investment. The fund manager aims to gather Rs250 crore initially, with a potential additional sum of Rs750 crore through a greenshoe option. 

The fund's investment scope includes opportunities like holding company financing, loans against shares, acquisition financing, and debt instruments of microfinance lenders and niche non-banking finance companies. 

Notably, the fund targets an untapped segment between high investment-grade credit and mezzanine credit, aiming to provide returns ranging from 11.5% to 13.5%. 

The launch of this credit fund aligns with the current low-interest-rate environment, addressing investors' need for higher yields. This initiative by Reliance AIF emerges amid a growing interest in structured credit financing.