Investment firm Multiples adds credit strategy division, hires former Deutsche executive to head unit

Bengaluru: Multiples Alternate Asset Management has added a new credit strategy division and appointed former Deutsche Bank executive Rahul Chawla as its managing director to oversee the unit, the investment firm said in a statement on Tuesday.

Several Indian private equity firms have been navigating a credit strategy over the last year. The development comes as investment firms look to bridge the supply-demand gaps for mid-market companies in high-growth areas and offer capital solutions for shorter tenures. This enables them to get quicker liquidity with lesser downside to their investments.

Historically, Multiples has focused on core sectors such as financial services, pharma, healthcare, consumer and technology. 

Some of its investments include Vastu Housing Finance, Encube, Zenex, PVR, Delhivery, Dream Sports, Quantiphi, Kogta Financial, ACKO, Niyo, Licious and MoEngage.

Private credit has been in high demand in India due to limited supply from banks and non-banking financial companies. Other firms including ASK Group, Edelweiss, BPEA Credit are also among those targeting the private credit opportunity in the country.

Private credit deals have seen robust growth so far this year. In the first half of 2024, private credit deals soared to an all-time high for any six-month period to $6 billion deployed across 96 deals, according to a EY report published last month. This was driven by major deals across sectors such as real estate, infrastructure, and healthcare.

Homegrown private equity firm True North had in November raised ₹1,000 crore towards its maiden credit fund, marking its foray into private credit. 

In 2018, Multiples scrapped its stressed assets investment division two years after creating a team to tap into the opportunity emanating from toxic bank assets, according to a VC Circle report.

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New role

Chawla will lead the company’s efforts to develop its new credit strategy, leveraging Multiples' franchise in managing private capital, the statement said. 

With over 25 years of experience in investment banking and private credit, Chawla will build a team for the credit fund.

Chawla brings expertise in leading origination, execution, and delivery across structured lending, equity derivatives, and debt capital market solutions closing financing solutions for upwards of $20 billion, Multiples said.

In his most recent role, Chawla headed financing for financial sponsors in the APAC region at Deutsche Bank, which he joined in 2014. Prior to that, he was the managing director of the investment banking division and head of the global market solutions at Credit Suisse.

Renuka Ramnath, founder, MD and CEO of Multiples said Chawla will build the firm's new credit strategy as a "scaled and lasting business delivering strong returns for our investors”.

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