MCG Series I: A Hybrid Fund for Income and Growth

MCG Series I: A Hybrid Fund for Income and Growth

MCG Series I is MavenArk's flagship Category II AIF, combining the stability of performing credit with the upside of emerging equity. Built for investors seeking income with long-term value creation.

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Introduction

Mavenark Credit And Growth Fund Series I is a Category II Alternative Investment Fund (AIF) offering a hybrid investment strategy. It aims to deliver a combination of regular income and long-term capital appreciation through investment in fixed income and equities respectively. The MCG Fund - Series I is focused on investing ONLY in the BFSI (Banking, Financial Services, Insurance) sector with its mandate permitting it to invest in:

Minimum 51% in Fixed Income securities(belonging to the Performing Credit category)
Maximum up to 49% in Equities(Pre-IPO and/or Listed Equities)

Debt

Structured debt investments with proven repayment history, supported by deep credit analysis and hands-on portfolio oversight.

Equity

Equity investments focused on high-growth businesses.

Sector Focus

MCG Fund - Series I plans to invest in following sub-sectors within BFSI :-

Balance Sheet based businesses

Banks, Small Finance Banks, NBFC

Fee Based businesses

Asset Management, Wealth Management, Credit Rating, Brokerages

Insurance

Life Insurance, General Insurance (Health, Motor, Property)

Fintechs

Payments, Investments, Credit Underwriting, Collections, Fraud detection and multiple other evolving use cases

Market Infrastructure Institutions

Stock Exchanges- BSE/NSE, Depositories- CDSL/ NSDL

Why BFSI Sector?

Core Economic Sector

India growth story is not possible without a robust, healthy and growing BFSI sector.

Highly Regulated Sector

Regulated by RBI, SEBI, IRDAI.

Highest Diversity of Opportunities- BFSI sector can be classified into the following buckets-

Balance Sheet (Banks, Small Finance Banks, NBFC)
Fee Based (Asset Management, Wealth Management, Credit Rating, Brokerages.
Fintech (Payments, Investments, Credit Underwriting, Collections, Fraud detection and multiple other evolving use cases)
Market Infrastructure Institutions (Stock Exchanges- BSE/NSE, Depositories- CDSL/ NSDL)

Most liquid segment of Debt & Equity Capital Markets:

BFSI constitutes more than 50% of all outstanding issuances in the bond markets while it has an exposure of approximately 35% among all major equity indices.

5. Deep Domain Expertise of the Founders:

The founders have collective experience of more than 70 years among various segments of BFSI such as Asset Management, Investment Banking, and Wealth Management having worked for and on mandates of the largest banks, NBFCs and other market intermediaries.

Investment Components & Returns

Component	Allocation	Focus Area	Indicative Returns (Gross)
Performing Credit	≥ 51%	Structured lending in diversified sectors (MFI, Commercial Vehicles, MSME, Gold Loans, HFCs, etc.)	12%–14% YTM
Equity	≤ 49%	High-growth equity in BFSI-related sectors	Mid to high-20% XIRR
Performing Credit + Equity	Performing Credit (≥ 51%) + Equity (≤ 49%)	Performing Credit & High Growth Equity (Credit & Equity investments NOT in the same company)	18%–22% XIRR

Investor Profile

Investors who desire to earn regular income along with long term capital growth with moderate to aggressive risk profile and an investment horizon of 5–6 years.

Risk Spectrum

Placed between pure Credit and pure Equity/venture capital AIFs; offers lower volatility than equity but slightly more than credit AIFs.

Mavenark Credit Report April 2025

Key Fund Highlights & Metrics

MCG Series I aims to build a carefully curated portfolio of 10–12 companies operating across high-impact, BFSI-led sectors. The fund follows a dual-allocation strategy — with at least 51% invested in performing credit to generate stable monthly income, and up to 49% in emerging equity to capture long-term growth. This blend is designed to balance income consistency with capital appreciation, offering investors a structured path to participate in India's evolving financial landscape.