Moelis India CEO Girotra sees private credit surging, bets on AI and data centre deals

“India’s private credit market is booming,” said Manisha Girotra, CEO of Moelis India. Mint.

He said private loans can be structured to reflect individual risk appetites because they are more flexible in the cap table.

“Banks, especially global ones, are competing very hard to finance mergers and acquisitions, but you will see more private loans emerging,” Girotra added.

Of course, compared to the rest of the world, India’s private credit market is very small. According to S&P Global, the country’s private credit market had assets under management estimated at $25-30 billion as of the end of FY25; this represented 1.2% of the overall corporate lending sector.

Girotra’s rise in the private loan market can also be attributed to the fact that private loan yields in India generally range between 14% and 22%. This is significantly higher than the average return in India of 8 per cent to 10 per cent for banks and 10 per cent to 13 per cent for finance companies, according to S&P Global’s 2025 report.

Girotra, Adani Airports Holdings Ltd. “These private loan players offer real, great flexibility,” he said, pointing to the example of

When Adani’s Mumbai International Airport first raised private loans as a greenfield project in 2021, options were limited.

Four years later, as the project neared operation, it refinanced its $750 million debt facility a second time through private lenders led by funds managed by Apollo.

Then, in June 2025, private equity giant KKR & Co. provided $600 million in financing to Ranjan Pai’s Manipal group, making it the American firm’s largest private loan investment in India. The capital was backed by KKR’s proprietary credit and insurance platforms.

tough competition

Girotra explained that competitive pricing of private credit has enabled it to gain a foothold in India’s longer-term and better quality infrastructure assets.

But in recent years, competition from other forms of capital has intensified as stock market valuations have offered issuers a cheaper alternative. Today, borrowers have multiple options for structured credit, including wholesale lenders, mutual funds, and finance companies. “This has always suppressed private credit demand and yields, leading to an increase in covenant-lite transactions,” S&P said in its report.

However, Girotra remains optimistic about private credit and expects the share of borrowing to increase. “I think you’ll see it play a much bigger role going forward,” he said.

Before joining the India arm of New York-based Moelis & Co., Girotra served as CEO and country head of UBS in India, where he led the investment bank, commercial bank, markets, equity research and asset management divisions. Prior to this, he was head of Barclays Bank’s north India business.

He highlighted how investment bankers have noticed increased competition between private equity and public markets over the past few years.

“What makes our lives even more difficult right now is that private equity competes with the public markets. Given the number of initial public offerings (IPOs) last year and the valuations the public markets offer, private equity [instead of credit] It had to become more competitive.”

India’s IPO market has emerged as one of the hottest global destinations in 2025, with over 350 companies investing in more than 2025. ₹1.75 trillion. With competition increasing between public markets and private capital, Girotra expects some dual monitoring to occur in the Indian deal ecosystem as well.

The two-way process is a strategic path a company takes to raise funds when it’s not sure which direction to go.

Girotra cited the example of Manjushree Technopak selling its portfolio firm to PAG in late 2024 after Advent International pursued a two-pronged strategy.

Mint had also reported in February 2025 that ITC was considering acquiring Orkla India for $1.4 billion; This is seen as a turning point in MNC’s India listing plans.

Renewable Resources, Artificial Intelligence and Healthcare Talk

Girotra said that in the 2026 agreement environment, activities in the fields of renewable energy and artificial intelligence, including data centers, will likely increase.

Industry analysts believe India’s data center capacity will grow fivefold by 2030, from current levels of around 1 GW to over 8 GW, according to a KPMG report dated December 2025. This growth is expected to generate capital expenditures of over $30 billion.

Girotra said this growth in the sector will enable buyers and PE-backed platforms to continue pursuing targets in data platforms, AI-related infrastructure and renewable energy sources to fuel these assets.

He said that India will also see significant activity in the coming months in sectors where domestic consumers are end users, such as healthcare.

“The urban middle class is growing and rural India is doing well again. So naturally everyone wants to play in this market and the appetite for mergers and acquisitions will also be huge at this point,” he explained.

He said the consumer healthcare space is currently ‘on fire’ with deals like Manipal’s acquisition of Sahyadri Hospitals for $760 million and Torrent Pharma’s acquisition of a controlling stake in JB Chemicals from KKR.

According to Grant Thornton Bharat data, overall investment in India’s pharmaceutical sector in 2025 stood at $8.3 billion in mergers and acquisitions and PE/VC deals; Public markets added another $1.5 billion through IPOs and $1.2 billion through Qualified Institutional Placements (QIPs), according to Grant Thornton Bharat data.

Grant Thornton added that PE firms will continue to invest in single-specialty formats directly or in platform mode, focusing on oncology, In Vitro Fertilization (IVF), maternal and child care, dialysis and eye care.

But healthcare is just one of many sectors that will come forward, Girotra said.

“While the government has a ‘one step ahead’ in infrastructure that private companies have traditionally failed to match, other areas such as semiconductors, rare earth minerals, cement and paints will also see a lot of excitement,” he said, without providing details.