InCred Alternatives has closed its maiden special opportunities credit fund with a corpus of ₹1,500 crore, joining a wave of investment firms entering India’s growing private credit market.
“India’s private credit market is at an early but decisive stage of institutionalization and is very different from the private credit market in the West,” Saurabh Jhalaria, chief investment officer–private credit at InCred Alternatives, said in a company statement on Tuesday.
“The supply gap is large and the risk-reward potential is compelling,” he added.
The special opportunities credit fund has raised capital from domestic family offices, ultra-high-net-worth individuals and international investors. About 75% of the fund has already been deployed across sectors such as auto, power, oil & gas, and hospitality. The fund focuses on old-economy businesses with hard asset coverage, established cash flows and clear structural downside protection built in at the time of investment.
InCred Alternatives has so far raised over ₹4,000 crore across its performing credit funds and special situation funds. Domestic and global investment firms are entering the space as companies seek faster and more flexible capital than traditional lenders can provide.
Firms ramp up private credit push
InCred Group’s founder Bhupinder Singh said the alternatives arm, launched in 2022, has a track record in origination, underwriting, active portfolio management, and income distribution.
Over the past 12 to 18 months, firms including DMI Alternatives, Ascertis Credit, Motilal Oswal Alternates, ASK Group, True North, Edelweiss, Multiples Alternate Asset Management, Prabhudas Lilladhar, 360 One Asset and Vivriti Asset Management have launched new funds.
Global heavyweight Blackstone Group and Bandhan AMC are also setting up dedicated platforms. The National Investment and Infrastructure Fund (NIIF) has announced a $2 billion plan to attract global capital into the asset class.