HDFC AMC bets on fast-growing private credit market with new ₹2,500-crore fund

HDFC Asset Management Company has stepped into the fast-growing private credit market with its new Structured Credit Fund-I, targeting mid-sized companies with alternative debt financing.

International Finance Corporation (IFC), a member of the World Bank Group ₹HDFC AMC has raised Rs 220 crore as anchor investor in Structured Credit Fund-I, the asset management company said on Monday.

The fund has already secured ₹1,290 crore has been committed in the first close and a total of 1,290 crore is targeted ₹1,500 crore with additional green shoe option ₹1,000 crore.

The commitment amount includes sponsor commitment of up to 14 per cent of HDFC AMC’s fund structure.

The fund will invest in mid-market companies and has already made commitments. ₹380 crore in three deals covering various sectors. It will target mid-teen returns over a 4-6 year horizon.

HDFC AMC said the fund will improve access to finance for underserved middle market companies by providing alternative debt financing, supporting job creation and encouraging product and market innovation where traditional financing often faces limitations.

HDFC AMC stated that this will also help strengthen India’s private credit ecosystem and support increased private lending for mid-sized companies.