India Credit

Opportunities
Fund II

Modulus Alternatives
Investment Managers Limited

(Formerly known as Centrum Alternative Investment Managers Limited) April 2023

Outline

Modulus Alternatives 01

Fund I - Track Record & Performance 05

Team 11

India Credit Opportunities Fund II 15

Investment Strategy 21

Annexure 28
01

Modulus Alternatives
01
Modulus Alternatives
Established Private Credit Platform

Who we are
1,740*cr
Started in 2018 with a successful track record of investing in Capital invested in INR across
Private Credit strategies. AIF & Co-Invested Capital

Experienced Team with relevant domain expertise.

Focus on proprietary deal flow with rigorous credit underwriting

processes.
700** cr
Cumulatively returned capital
Strong governance with Independent Chairman of the AMC board.

What we do 15
No. of Investments

Focused on mid-market Performing Private Credit

opportunities

7
Emphasis on capital protection with active fund management
to enhance yield:
▪ Well researched sector calls No. of exits
▪ Established & Pedigreed Issuers
▪ Relatively short duration investments
▪ Strong contractual protections
▪ Senior Secured Protections
0
As on March 31, 2023, No. of delinquencies
*Fund Invested Capital: INR 605 crore, Co-Invested Capital: INR 1,135 crore
**Capital Returned to Fund Investors: INR 60 crore; Capital Returned to Co-Investors: INR 640 crore 02
Modulus Alternatives Corporate Structure

Centrum Capital
Limited

100%

Modulus Alternatives Investment

Managers Limited
• Incorporated in January 2019
• Statutory Auditor - E&Y
• Currently manages only CCOF and ICOF II

Investment Manager and Sponsor

Centrum Credit Opportunities Fund India Credit Opportunities Fund II

( Category II Alternative Investment Fund ( Category II Alternative Investment Fund
a Category II Alternative Investment Fund
registeredwith
registered withSEBI
SEBI) registered with SEBI)

03
Board of Directors

Vinod Rai Chandir Gidwani Rakshat Kapoor

Chairman, Board of Directors Director Director
• Former Comptroller and Auditor • Founder & Chairman Emeritus, • Fund Manager & Chief Investment
General of India. Centrum Group. Officer.
• Mr. Vinod Rai is a former IAS officer • He is a first-generation • Rakshat Kapoor has over 20 years
who served as the 11th Comptroller entrepreneur. As the founder of the of private credit experience. He has
and Auditor General of India. He Company, he has set up a robust worked on several turnaround
has wide and long experience of platform that offers integrated situations & restructurings,
working in various capacities at financial services. for institutions as distressed debt and private equity
both the Federal and State well as individuals. across the capital structure in
Governments. different sectors.
• He is a Chartered Accountant.
• In 2016, he was appointed the • Prior to joining Modulus
chairman of Banks Board Bureau, Alternatives, he was with Nomura
which provides advise on top-level Securities and prior to that with
appointments at public sector Deutsche Bank’s private credit
banks and ways to address the bad investments and ICICI Bank’s
loans. structured finance division.

04
02

Fund I-Track Record

& Performance
05
Investments with Large Corporate Houses

2019 2020 2021 2022 2023

06
Portfolio Overview
Asset Mix diversified across sectors

18%+ 100% 2-3x <3yrs 0

Gross Yield at Secured Security Cover Average Tenure Delinquencies
Fund level
(pre-expenses)

Invested capital Exposure Investment Type

Financial Services Consumer Electrical

Special Sits
Power Transmission Steel
LAS
Logistics Chemicals
Growth Capital
Pharmaceuticals Water Treatment
Cash Flow Backed
Road EPC Fertilizers

Power Generation

#Represents the Gross Managed AUM #Represents the Current Invested Portfolio

07
CCOF Key Terms

Fund Name Centrum Credit Opportunities Fund (CCOF)

Fund Structure SEBI registered AIF (Category II)

Modulus Alternatives Investment Managers Limited

Investment Manager
(Formerly known as Centrum Alternative Investment Managers Limited)

Final close March 31, 2022

Fund Tenor Up to September 2024 (+ 1 + 1)

Hurdle Rate 10% per annum (pre-tax, post expenses)

Carried Interest 15% above Hurdle Rate with no catch-up

Class of units As a percentage of the Invested Capital

Management Fee Class A1- INR 1-5 crore 1.75%
(per annum payable quarterly) Class A2- INR 5-10 crore 1.60%
Class A3- INR 10 crore+ 1.50%

Operating Expenses Upto 0.25% per annum of the aggregate Capital Commitments (based on actuals)

Valuation & Tax Trustee Fund Accounting

Legal Counsel Auditor Administration
Advisors
Legal partner:

08
Buoyant Performance amidst extreme volatility

Gross Managed AUM:

Fund Tracking
2018: Launch 18% Gross IRR INR 1,740 crore
Invested Managed AUM:
8 Growth in INR 995 crore
NB ky ro
6.6x Invested Capital
4000
FC ck
s

Ukraine War Global growth

7.5
sp et

concerns
3500
rea

ILFS Crisis
ds

7 3000
DHFL Crisis
2500
Yes Bank &
6.5 Covid 19
Franklin issues
2nd wave 2000
Fund Gross AUM:
6 INR 605 crore 1500
Gross Managed AUM:
INR 255 crore Fund Invested AUM:
1000
5.5
INR 421 crore
500

5 0
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Invested Fund AUM (RHS) Total Managed AUM (RHS) Other Investor AUM (RHS) 10Y G 8ec (LHS)

09
Featured Investments
TO BE WORKED ON
Leading Base Chemicals Company

10
Featured Investments
Leading Fast Moving Electrical Company

11
03

Team
12
Investment Committee

Jaspal Bindra K R Kamath Rakshat Kapoor

Investment Committee Investment Committee Investment Committee
• Chairman, Centrum Group • Former Chairman - Punjab National • Fund Manager & Chief Investment
Bank Officer
• Mr. Jaspal Bindra is a veteran
Banker with a successful global • Mr. Kamath has been the Chairman • Rakshat Kapoor leads the private
career spanning over three and Managing Director (CMD) of credit strategy at Modulus
decades. He has held coveted Punjab National Bank (PNB) and Alternatives.
positions across various foreign has been successful in changing
Banks such as Standard Chartered the public perception about PNB. • His vast knowledge in private
Bank, UBS and Bank of America. markets investing over the past 20
• Mr. Kamath was also the Chairman years and domain expertise
• Under his leadership, Centrum of PNB Housing Finance where he along-with superior risk
Group has transitioned from a played a key role in divestment of underwriting capabilities greatly aid
financial advisory business to PNB’s stake. the Investment Committee in
becoming a diversified financial making investment decisions.
• Mr. Kamath was CMD of Allahabad
services group including Unity
Bank and Executive Director of • He founded Modulus Alternatives'
Small Finance Bank.
Bank of India. Private Credit business and has
expanded it into a successful
franchise.

13
Investment Team
45+ years of credit experience

Rakshat Kapoor Apurva Agarwal Siddharth Suresh Harish Goel

Fund Manager & CIO

• Rakshat Kapoor has over 20 • Apurva has 10 years of • Siddharth has 9 years of • Harish has nearly 7 years of
years of experience in private experience in deal experience in various roles experience spanning across
credit structuring, credit appraisals, across corporate finance, roles in Corporate and
credit, legal risk mitigations corporate banking and Investment Banking verticals.
• He has extensively worked on and managing large portfolio structured credit.
special situations credit of clients. • Before joining Modulus
investing all throughout his • Prior to joining Modulus Alternatives, Harish was
career and has specialized • Previously, he worked at Alternatives, Siddharth employed in the Debt Capital
skill sets in managing Aditya Birla Sunlife AMC's worked in the coverage credit Markets team at JM Financial
turnaround situations & Private Credit Division team of Standard Chartered where he focused on
restructurings, distressed handling structured credit Bank with a focus on structuring customized credit
debt and private equity. transactions and at Yes providing credit solutions for solutions for large clients
Bank's corporate finance large corporates. across multiple sectors.
• He has led investments team before joining Modulus
across variety of industries Alternatives . • He received his • Harish holds a degree in
but in particular undergraduate degree from Electrical Engineering from
infrastructure, metals & • He holds an IT degree from the Indian Institute of the Indian Institute of
mining, cement, industrials, Indian Institute of Information Technology, Madras and Engineering Science &
healthcare & pharmaceuticals Technology Allahabad and an received an MBA from Indian Technology and an MBA in
etc. MBA in Finance from NITIE Institute of Management, Finance from XLRI. He is also
Mumbai. Kozhikode. a CFA Charterholder.
14
Partner Functions

Vishal Ladiwal
Fund Raise & Vishal leads the fund raise and distribution. Prior to Modulus, he was with
Distribution Motilal Oswal AMC heading Institutional Sales

Charvi Vemula Shah

Fund Administration
Charvi is in Fund Administration & its operations. Prior to joining Modulus, she was with
& Operations Motilal Oswal Private Equity

Jyoti Gandhi
Deal Operations & Jyoti is in Deal Operations & Portfolio Monitoring. Prior to joining Modulus, she was with
Portfolio Monitoring Xander Private Equity

Raji Vishwanathan
Legal Raji is currently the designated Group General Counsel at Centrum Group of companies
with a portfolio of the legal, secretarial and compliance functions

Bhumika Jani
Compliance Officer
Bhumika is the Chief Compliance Officer. Previously, she was with Kotak Securities

Rohit Jain
Finance & Accounts Rohit oversees the Finance & Accounts affairs for the Group. Previously, he was with Yes
Securities

15
04

India Credit
Opportunities Fund II
16
Key Terms

Fund Name India Credit Opportunities Fund- II

Fund Structure SEBI registered AIF (Category II)

Sponsor & Investment Modulus Alternatives Investment Managers Limited Manager

Manager (Formerly known as Centrum Alternative Investment Managers Limited)

Target Commitments INR 750 crs + INR 500 crs green shoe option

Final close Within 12 months of First Close (can be further extended by 12 months with investor approval)

6 years from First Close (5 years from Final Close) +1year* +1year*
Fund Tenor
* Extension subject to approval of investors

Commitment Period 36 months from Final close

Target Gross IRR INR 18% per annum (approximate)

Hurdle Rate 11% per annum (pre-tax, post expenses)

Additional Return 10% with full catch-up

Class of units As a percentage of the Invested Capital

Management Fee Class A1- INR 1-10 crs 1.75%
(per annum payable quarterly Class A2- INR 10-25 crs 1.60%
on Invested Capital) Class A3- INR 25-50 crs 1.45%
Class A4- INR 50 crs and above 1.30%

Operating Expenses Upto 0.25% per annum of the aggregate Capital Commitments (based on actuals)

17
Assisted by Best in Class Service Partners

Legal Counsel Statutory Auditor Tax Advisory Trustee

To be finalized

Fund Portfolio Fund Investor

Merchant Banker Relations
Valuation

18
Illustration - Investor Cash Flows

Case-1 Case-II Case-III Case-IV

Gross Fund IRR 18.00% 16.00% 14.00% 12.00%

Management Fees 2.07% 2.07% 2.07% 2.07%

(incl GST)

Operating Expenses (incl GST) 0.30% 0.30% 0.30% 0.30%

Investor IRR (post-expenses) 15.64% 13.64% 11.64% 9.64%

Hurdle Rate 11.00% 11.00% 11.00% 11.00%

10% of Investor IRR 1.56% 1.36% 1.16% 0.96%

Actual Carry 1.56% 1.36% 0.64% 0.00%

Investor IRR (Post-Carry) 14.08% 12.28% 11.00% 9.64%

Carried Interest Assumption 10.00% << with catch up

CARRIED INTEREST IS CALCULATED AS 10% OF POST EXPENSES IRR SUBJECT TO A HURDLE RATE OF 11% BEING MAINTAINED

19
Illustration - Inventor Cash Flows for INR 10
crores investment

In INR Crs Jun-23 Jun-24 Jun-25 Jun-26 Jun-27 Jun-28 Jun-29

Drawdown % 10% 50% 40%

Drawdown -1.00 -5.00 -4.00

Quarterly Distributions - 0.14 0.55 0.77 0.82 0.72 0.36

Principal Redemptions - - - - - 5.71 7.49

Investor Cash Flows -1.00 -4.86 -3.45 0.77 0.82 6.43 7.85

THE ABOVE DRAWDOWN PERCENTAGES HAVE BEEN SHOWN CUMULATIVELY

FOR THE YEAR; HOWEVER THE DRAWDOWNS WILL BE SPREAD ACROSS THE YEAR

20
05

Investment Strategy
21
Focus Sectors

Sectors we prefer

Consumption Healthcare
Consumer staples and durables, Consumer Hospitals, diagnostic centres, medical
food & Consumer services. equipment manufacturers, pharma.

Industrials Chemicals
Capital goods & Engineering. Agrochemicals, Specialty chemicals, Fertilizers
& Bulk chemicals.

Select infrastructure Metals

Warehousing, Transport & Logistics. Value-added and specialty steel, aluminum,
copper producers.

Auto ancillaries
Tier I, supplying to personal mobility vehicles,
specialized productions.

Sectors we avoid

Trading Gems and Mining Greenfield Media

businesses Jewelry infrastructure
01
22
Investment Approach: Key Tenets

Fundamentally Large & Mid Corp Prudent Risk

Strong Companies Companies Management
▪ Sizeable market share positions ▪ Enhanced stability of borrowers ▪ Highly diversified portfolio
▪ Companies with long-term ▪ EBITDA of INR 50- 200 crore ▪ Seek control/lead positions
staying power ▪ Sector concentration capped at
25%

Buoyant Sectors Highly Selective Benefits of Scale

▪ Sectors with positive tailwinds ▪ Average Annual ~2% closing rate ▪ Benefits of repeat business
▪ Strong entry barriers ▪ Equity style diligence processes ▪ Ability to be a meaningful
financing partner

23
Investment Process
Methodical & Structured

24
Portfolio Construction
Opportunistic Upside with Downside Protection

25
Thank You!
Contact us.

Vishal Ladiwal Rakshat Kapoor

Email: [Link]@[Link] Email: [Link]@[Link]

Mobile: +919833608117 Mobile: +919820663722

26
Disclaimer
This confidential presentation (“Document”) has been prepared exclusively for information and Certain information, including financial statements and statistical data, contained in this Document
discussion purposes only which may undergo change in future and should not be regarded as an constitutes “forward looking statements” which can be identified by the use of forward-looking
official opinion or a recommendation of any kind. This Document does not constitute an offer to terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”,
sell units or a solicitation of an offer to buy units of India Credit Opportunities Fund II (“Fund”). This “intend”, “continue” or “believe”, or any similar expressions, or other variations thereon. Due to
Document does not contain any direct, indirect and or deemed offer of any securities to the public various risks and uncertainties, actual events or results or the actual performance may differ
as such or otherwise and does not constitute or form part of any offer or invitation to subscribe for, materially from those reflected or contemplated in such forward looking statements. As a result,
underwrite or purchase securities. Any inconsistency between the contents of this Document and investors should not rely on such forward-looking statements.
other governing documents of Fund shall be resolved in favor of governing documents of the Fund An investment in the Fund is subject to various risks, none of which are outlined herein.
(“Fund Documents”). This Document has not been approved by any supervisory authority. Each prospective investor should bear in mind that past performance is not necessarily indicative
A private offering of the units of the Fund will be made pursuant to a confidential Private Placement of future results, and there can be no assurance of future results. Except where otherwise indicated
Memorandum (“PPM”) and the related subscription materials including the contribution agreement herein, the information provided herein is based on matters that exist as of the date of preparation
which contain significant additional information about the terms of an investment in the Fund, and and not as of any future date and will not be updated, modified, amended or otherwise revised to
which will be furnished to qualified investors on a confidential basis at their request for their reflect information that subsequently becomes available or circumstances existing or changes
consideration of such offering. The information and statistical data contained herein is proprietary occurring after the date hereof. The Investment Manager has no obligation to notify the recipient of
and for the recipient’s internal use only and is qualified in its entirety by reference to the Fund this Document in the event that any matter stated herein, or any opinion, projection, forecast or
Documents. Certain information in this Document has been obtained from third party sources estimate set forth herein, changes or subsequently becomes inaccurate.
believed to be reliable. We do not represent that any information, including any third-party The recipients should also note that there can be no assurance that any of the prospective
information, is accurate or complete and it should not be relied upon without proper investigation investments, if any, described in this Document, will be consummated or any other arrangements
on your part. with any other person will fructify, or in either case continue even if consummated or fructified. The
The recipient is provided the information contained herein on a confidential basis which should not investment professionals and members of any committee referred to herein involved in investments
be reproduced or disclosed to third parties or duplicated, in whole or in part, or used for any may differ or change from time to time. Further, references to any venture funds or other partners
purpose other than the purpose for which it is provided, without the express written consent of participating in the Fund or being involved in any manner should not be construed as
Modulus Alternatives Investment Managers Limited (“Investment Manager”) The recipient of this arrangements that are subject to legally binding commitments.
Document is not assured of being eligible to subscribe to units of the Fund and any offering of No assurance or guarantee is given for any accuracy of any of the facts interpretations in this
units shall be strictly in accordance with Fund Documents. Document. The parties involved in the preparation of this Document shall not be liable to any
Nothing in this Document is intended to constitute legal, tax, securities or investment advice, or person including the prospective investor for any claim or demand for damages or otherwise, the
opinion regarding the appropriateness of any investment, or a solicitation for any product or relevance, accuracy or completeness of the facts information contained herein, and disclaim any
service. Opinions, estimates and projections in this Document constitute the current judgment of and all liability as to the facts information set forth herein or omissions here from, including, without
the Investment Manager and is subject to change without notice. Any projections, forecasts and limitation, any express or implied representation or warranty with respect to such information. The
estimates contained in this Document are necessarily speculative in nature and are based upon information including facts and figures have been derived from publicly available information or
certain assumptions. An investment in any strategy, including the strategy described herein, other sources which the Investment Manager believes to be reliable but in no way warrants to its
involves a high degree of risk. Returns are dependent on prevalent market factors, liquidity and accuracy or completeness and as such, should be relied upon by the prospective investor at his or
credit conditions. The aimed returns mentioned anywhere in this Document is estimated on a pre her own risk. For details refer to the PPM, which can be provided on request.
tax basis unless specified otherwise, are purely indicative and are not promised or guaranteed in A description of certain risks involved would be set out in the PPM or the Fund Documents. Such
any manner. It can be expected that some or all of such assumptions will not materialize or will risks should be carefully considered by the recipient before making any investment decision. No
vary significantly from actual results. Units of the Fund are not registered with any regulatory reliance should be placed upon the contents of this Document by any person who may
authority, are offered pursuant to exemptions from such registration, and are subject to significant subsequently decide to apply, or not apply, for interests in the Fund.
restrictions. The recipient alone shall be responsible/ liable for any decision taken on the basis of this
The Investment Manager does not undertake to update or correct any information herein. No Document. This document and the information set forth herein is not targeted at the residents of
representation or warranty, express or implied, is made or assurance given by Investment Manager, any particular jurisdiction or country and is not intended for distribution to, or use by, any person in
its affiliates or their respective directors or employees and, without prejudice to any liability for, or any jurisdiction or country where such distribution or use would be contrary to local law or
remedy in respect of, fraudulent misrepresentation, no responsibility or liability or duty of care is, or regulation or require compliance with any local filing requirements. It is the responsibility of the
will be accepted by them: (a) as to the fairness, accuracy, completeness, currency, reliability or recipient to satisfy itself as to full compliance with the applicable laws and regulations of any
reasonableness of the information or opinions contained in this Document; or (b) for updating this relevant territory, including obtaining any requisite governmental, regulatory or other consent
Document, correcting any inaccuracies. None of Investment Manager, its affiliates or their (where applicable) and observing any other formality presented in such territory. Further, any rates
respective directors or employees shall be liable (save in case of a fraud) for any loss (direct, of return and other yields mentioned are indicative only and may change depending upon
indirect or consequential) or damage suffered by any person as a result of relying on any statement prevailing market, taxation, regulatory and other relevant factors.
in, or omission from, this Document.
Prospective investors should do their own due diligence and evaluations of the information
contained herein. The information contained herein does not purport to contain all of the
information that may be required to evaluate investment in units of the Fund. Each prospective
investor should examine the underlying Fund Documents and consult its own attorney, business
adviser and tax adviser as to legal, business, tax and related matters concerning the information
contained therein, before making any investment and or financial decision.

27
06

Annexure
28
AUM | Invested Capital Profile – March 31, 2023

SI. No Investment Sector CCOF Investment Co - Investment Total Investment

Current Portfolio
1 Max Ventures Investment Holding Private Ltd Financial Services 19.00 16.00 35.00
2 Strides Pharma Science Limited Pharmaceuticals 80.00 45.00 125.00
3 WorldOne Private Limited (JSPL) Power Generation 10.00 70.00 80.00
4 Zuari Agro Chemicals Limited Fertilizers 79.00 46.00 125.00
5 N D R Ware Housing Private Limited Logistics 67.60 62.40 130.00
6 Kalpataru Properties Private Limited Power Transmission 57.00 0.00 57.00
7 Wockhardt Limited Pharmaceuticals 55.23 169.77 225.00
8 Sadbhav Engineering Limited Road EPC 34.76 65.99 100.75
Invested AUM 402.59 475.16 877.75
Cash Balance 32.19

Partial Exits:
1 Sadbhav Engineering Limited Road EPC 18.71 35.54 54.25
2 Wockhardt Limited Pharmaceuticals 6.14 18.86 25.00
3 Kalpataru Properties Private Limited Power Transmission 13.00 0.00 13.00
4 Zuari Agro Chemicals Limited Fertilizers 0.00 25.00 25.00
Total Partial Exits 37.85 79.40 117.25
Complete Exits:
1 Jana Holdings Limited – II Financial Services 40.00 - 40.00
2 Jana Holdings Limited – I Financial Services - 155.00 155.00
3 Syska Group Consumer Electrical 68.00 102.00 170.00
4 OPJ Trading (P) Limited (JSPL) Commodity- Steel 31.00 69.00 100.00
5 DCW Limited Chemicals 42.00 108.00 150.00
6 Vishvaraj Environment (P) Limited Water Treatment 3.00 97.00 100.00
7 Zuari Global Limited Fertilizers - 30.00 30.00
Total Realized AUM 184.00 561.00 745.00
Gross AUM 624.44 1115.56 1740.00

*The numbers mentioned are in INR crore

29
Access to a Strong Deal Pipeline

# Investment Size Sector Key Details and Current Status

In INR Crore

• Hold Co Financing against security of

pledge of shares and real estate. Strong
1 Project Indigo 150 Conglomerate
underlying in BFSI.
• In Documentation

• Growth capital & refinance of existing

investments
2 Project Green 250 Renewables
• Term Sheet being discussed. Thereafter,
DD to begin

• Growth capital for expansion logistics

150 Agritech
3 Project Alpha
(Warehousing)
infrastructure
• Preliminary Credit evaluation Stage

• Refinance of existing debt

4 Project Prometheus 150 Healthcare & Pharma
• Preliminary Credit Evaluation stage

• Acquisition of minority investors stake

5 Project Zeus 100 Food & Beverage
• Preliminary Credit evaluation Stage

Auto Ancillaries • Growth capital for expansion

6 Project Spark 175
• Preliminary Credit evaluation Stage

Total 975

30