Axis AMC to launch ₹2,000 crore private credit fund as demand surges
MUMBAI: Axis Asset Management Company (AMC) is all set to launch its third private credit alternative investment fund (AIF) next week. ₹2,000 crore, a senior executive said. Mint. The move comes as the fund house plans to scale sharply in the private credit market, which is seeing record interest despite the retreat of traditional lenders.
“We are launching the fund next week and expect the first closing by February-end,” said Nachiket Naik, head of structured credit at Axis AMC. “This fund will be twice the size of the previous one because we see sufficient demand and a strong pipeline.”
Having fully launched its previous fund, Axis is moving quickly to capture the momentum in structured credit. According to an August EY report, private credit distribution in India grew to over $9 billion to over $10 million across 79 deals in the first half of 2025; This was up 53% from the previous year. Stable interest rates expectations and increasing financing gaps in infrastructure and real estate helped increase activity.
While EY estimates that the private credit market globally has exceeded $3 trillion, PwC has estimated that the Indian market will have a deal size of around $10 billion by 2024, with assets under management around $25 billion.
Axis AMC is India’s eighth largest mutual fund house by assets under management (AUM). ₹3.7 trillion, roughly ₹2.1 trillion in stocks and ₹1.2 trillion fixed income as of November. The fund house entered the alternatives business in 2019 and is now almost ₹7,000 crore across its AIFs, portfolio management services, private credit and private equity strategies.
Axis Fund III will target an initial corpus ₹1,000 crore and green shoe option for another ₹1000 crore. Axis expects its final credit facility to close in mid-2023. ₹1,250 crore and we closed at: ₹740 crore.
“Last fund, ₹740 crore has been almost fully deployed and is delivering returns in line with the promised ~14%,” Naik said, adding that he expects a similar performance from the new vehicle.
Average ticket sizes will increase ₹60-65 crore to approx. ₹125 crore in the new fund underscores the move towards larger mid-market deals at a time when competition is intensifying. India’s private credit market is at its busiest stage ever, with a wave of new entrants accelerating fund raising and deployments from established players.
Naik said financing gaps are widening as companies seek more flexible capital. “Single A and triple B companies have traditionally gone to NBFCs (non-banking financial companies), but NBFCs today do not have the capital to grow their corporate books. This leaves a large, unaddressed space with higher demand and shrinking supply,” he said.
Kochhar & Co. “The private credit ecosystem in India has evolved from a niche alternative to a vibrant, mainstream part of the capital stack, attracting both domestic pools and global managers and encouraging asset managers, insurers and non-bank lenders to develop specialized capabilities. As a result, it is increasingly being used by investment firms as a deliberate diversification arm alongside equity and public debt,” said Ketan Mukhija Partner, co-head of PE & VC Practice.
Axis plans to continue focusing on traditional mid-market manufacturing and industrial businesses while selectively deploying passive infrastructure themes such as renewables, storage and data centers.
The fund will stay away from NBFCs and new-age businesses, which Naik said are showing early signs of stress, especially in unsecured loans. “AMC-owned credit funds, including ours, largely play in the 13-14% range because institutional investors prefer moderate risk with predictable accruals,” he added.
