BlackSoil operates as an NBFC funded by permanent family office capital
Ankur Bansal · Ankur Bansal, BlackSoil Capital on Venture Debt funding in the Indian Startup Ecosystem · Sep 20, 2020 · at 2:43
Ankur Bansal, co-founder of BlackSoil Capital, explains how the firm's NBFC balance sheet model differs from closed-end venture debt fund structures.
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“So, we are at NBFC, ah, unlike other venture debt funds, they have to raise money from multiple LPs and then return the capital at the end of the fund, which could be ranging from five, seven years to 10 years. We don't have that kind of, ah, sort of challenge. We, ah, have permanent capital In the form of equity that we have raised from our couple of family offices who are sort of like a permanent LP with us and sort of we can deploy capital and sort of raise also for the debt on that balance sheet and sort of then whatever capital comes back in terms of principal repayments can again sort of. Deploy it again, right? So it's a like a permanent fund that we have, you could say as a structure which you could lever also, and then deploy and based on our strategy, allocate funds as the sort of sector goes on, right?”
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“Our interest rates range between, ah, 14 to 18%.”
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“Second is our loan tenor can range and we have done transactions as short as four months also, ah, at one off and we have done transaction as one off as five years also. But if you look at average tenor it will be between like 24 to 36 months.”