Zenflow
Private Credit. Resilient Alpha. Institutional Precision.
Move beyond traditional fixed income. Zenflow Finance provides exclusive access to Debt Alternative Investment Funds (AIFs), offering predictable cash flows through senior secured lending and structured credit — all driven by world-class investment research.
The Evolution of Debt
Why AIFs Are the New Core
As traditional debt mutual funds now face slab-rate taxation without indexation, Category II Debt AIFs have emerged as the superior choice for wealth management. These funds provide access to the private credit market — lending directly to high-growth companies, real estate projects, and infrastructure — at yields significantly higher than AAA corporate bonds. Designed for a moderate risk-reward profile, targeting net returns of 10.5%–13.5% p.a., with senior secured mandates backed by 1.5x–2x collateral cover.
Features
Why Invest in Debt AIFs
Higher Yield Potential
Target returns of 12-16% through direct lending and structured credit strategies.
Professional Credit Team
Experienced fund managers with deep credit analysis and underwriting expertise.
Diversified Portfolio
Exposure to multiple borrowers, sectors, and credit instruments in a single fund.
Regular Distributions
Monthly or quarterly income distributions from interest collections.
Collateral Security
Most loans are secured by assets, receivables, or corporate guarantees.
SEBI-regulated
Category II AIF registration with SEBI oversight and compliance requirements.
How It Works
Invest in Debt AIF in 4 Steps
Consultation
Discuss your yield expectations and risk tolerance with our debt advisory team.
Fund Selection
Review curated Debt AIF funds with track records, strategy details, and fee structures.
Commit Capital
Make the minimum ₹1 Crore commitment with a defined drawdown schedule.
Receive Distributions
Earn regular income distributions and principal repayments per the fund schedule.
Why Zenflow
The Zenflow Advantage for Debt AIFs
Fund Due Diligence
Comprehensive analysis of fund strategy, credit process, historical performance, and team.
Portfolio Monitoring
Ongoing fund performance tracking with credit quality and default monitoring.
Tax Reporting
Clear tax computation support for AIF income distributions and capital events.
Higher Yield Debt
Explore professional credit strategies
Access Debt AIFs for yields above traditional fixed income with professional management.
Frequently Asked Questions
Common Questions Answered
Per SEBI regulations, the minimum investment for any standard AIF remains ₹1 Crore. For Accredited Investors holding a valid certificate, some platforms offer enhanced flexibility.
Both are now largely comparable. Since Category II AIFs are pass-through entities, the interest income is taxed directly in your hands at your applicable income tax slab rate. However, AIFs often offer better pre-tax yields through private credit spreads.
Liquidity & Lock-in — typically closed-ended with 3.5 to 7 year tenure. Credit Concentration — ensure the fund has 15+ distinct credit exposures. Sponsor Skin-in-the-Game — SEBI mandates minimum 2.5% of corpus or ₹5 Crores invested by the fund manager.
Yes. Many treasury solutions involve allocating a portion of long-term surplus (3 years+) into performing credit AIFs. This provides a significant yield kicker over liquid funds while maintaining security through structured collateral.
SEBI now allows AIFs to enter a dissolution period at the end of their tenure to handle unliquidated investments, protecting investors from fire sales and allowing the manager more time to recover capital at fair value.
Expert Advisory
Ready to get started?
Schedule a call with our advisory team to discuss the right strategy for your goals.
Debt AIFs are typically structured as Category II AIFs under SEBI (AIF) Regulations, 2012. Minimum investment ₹1 Crore.
Alternative Investment Funds (AIFs) are high-risk products and are not suitable for all investors. Private credit involves risks including borrower default, interest rate fluctuations, and extended illiquidity. Past performance of any credit manager is not a guarantee of future repayments. Please read the PPM and Contribution Agreement thoroughly. All activities are governed by SEBI (AIF) Regulations, 2012.
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