Ascertis Credit eyes $1 billion for latest private credit fund

Ascertis Credit has launched its fourth private credit fund, targeting $1 billion, with over half already raised, as the investment firm seeks to back high-growth businesses in India and Southeast Asia.

The fund has raised $520 million in its first close from a diverse mix of existing and new institutional investors, family offices, and high-net-worth individuals across global markets and India, the firm stated on Tuesday.

The firm remains focused on providing customized, long-term performing credit solutions, primarily across services, infrastructure, and manufacturing, with an emphasis on delivering low-volatility, attractive risk-adjusted returns for investors, it added.

A bulk of the capital raised will be invested in India, it said, without disclosing further details.

“India is one of the largest and most exciting markets in Asia, and the focus on private credit as a strong asset class has grown substantially in recent times,” said Kanchan Jain, head at Ascertis Credit. “With Fund IV, we continue to scale our investment programme, supporting the capital needs of high-growth corporations while creating consistent value for our investors.”

The new fund comes after the final close of its ₹1,000 crore short-term income fund earlier this year, with over 25% more capital than its initial target. A large part of this India-focused fund has already been deployed.

Private credit funds and short-term income funds differ significantly in their investment focus, liquidity, accessibility, and risk-return profiles. For example, income funds have a tenure of up to three years, compared to the usual five-year tenure of other funds.

India opportunity

The private-credit platform, which underwent a rebranding exercise in 2024, from BPEA Credit to Ascertis Credit, has raised three funds to date and has invested over $1.5 billion over the last decade. The size of its previous funds was $82 million, $140 million, and $475 million. With over 40 exits across its funds, the firm claims to have clocked returns in the high teens.

Given that the fund is Asia-focused, India contributes a majority and continues to be the largest market for the investment firm. Southeast Asia is also an important segment for the firm. The investment firm handles capital for marquee global pension funds and developmental financial institutions alongside a diverse set of Asian and Indian family offices. Ascertis has offices in Delhi, Mumbai, and Singapore.

Broadly, private credit has been in high demand in the country due to limited supply from banks and non-banking financial companies.

The country’s private credit market saw a sharp surge in deal activity, with total deployment reaching $9 billion across 79 deals (above $10 million) in the first half of 2025, a 53% rise over the year-ago period, according to an August report by consulting firm EY. This was driven by stable interest rate expectations and gaps left by banks in sectors like infrastructure and real estate.

ASK Group, True North, Edelweiss, and Multiples Alternate Asset Management are also among those targeting the private credit opportunity.

Moreover, the National Investment and Infrastructure Fund's (NIIF) $2 billion plan to attract global capital, while Motilal Oswal, Prabhudas Lilladhar, and Vivriti Asset Management collectively target over $600 million through new funds focused on performing credit and mid-market investments.

Blackstone Group and Bandhan AMC are also launching new investment platforms.

While Global funds remain the dominant players in the private credit market, domestic funds focus on mid-market and opportunistic deals.