Blitz Bureau
NEW DELHI:India’s fast-growing private credit market has received another strong vote of confidence, with Ascertis Credit launching its fourth and largest private credit fund, aiming to raise $1 billion.
The firm — formerly BPEA Credit — has already secured $520 million in the first close, signalling deep investor appetite for alternative debt strategies at a time when traditional lenders remain constrained.
The fund has attracted commitments from a diverse pool of institutional investors, global family offices, and high-net-worth individuals across the US, Europe, the Middle East, and India.
Ascertis said a significant proportion of the capital will be deployed in India, which continues to be its single largest and most dynamic private credit market.
India’s economic expansion, coupled with the funding gap created by banks and NBFCs, has transformed private credit into one of the most sought-after asset classes.
With rising demand from mid-market and high-growth enterprises, private credit investments in India surged to $9 billion across 79 deals (above $10 million) in the first half of 2025 — marking a 53 per cent year-on-year growth, according to EY.
“As private credit matures globally, India stands out with strong demand from high-growth corporations,” said Kanchan Jain, Head of Ascertis Credit. “Fund IV strengthens our ability to back resilient companies with long-term, customised credit solutions while delivering consistent returns to investors.”
Ascertis Credit has steadily emerged as one of Asia’s most active private credit investors. Over the past decade, the platform has deployed more than $1.5 billion, delivering a stable track record across services, infrastructure, manufacturing, and consumption-driven sectors.
Its earlier funds — $161 million, $221 million, and $475 million — helped build a deep portfolio with over 40 successful exits. The rebranding from BPEA Credit to Ascertis in 2024 marked a scale-up phase, with an emphasis on low-volatility, risk-adjusted returns, longer investment cycles, and deeper India-led deployment.
The firm has also engineered innovative structures in the short-term credit space. Its India-focused “short-term income fund” recently closed at ₹1,000 crore, exceeding its original target by more than 25 per cent, underscoring the demand for flexible, liquid credit instruments.
Why private credit booming in India
Ascertis’ latest fund reflects broader structural shifts in the Indian lending landscape:
• Funding gap created by banks & NBFCs: Tighter regulatory frameworks have limited traditional lending, especially to mid-sized businesses.
• Growing appetite for customised credit: Corporates prefer private lenders who provide speed, flexible structuring, and long-tenure capital.
• Global investors seeking India exposure: With muted returns in Western markets, global LPs are expanding allocations to Indian private debt.
• Infrastructure and services sectors demanding capital: Ascertis sees strong opportunities in infrastructure, logistics, manufacturing, and tech-enabled services.