Mumbai-based Artha Global on Friday said it has made its first private credit investment through its Opportunities Fund, deploying Rs 700 crore (about $81.9 million) into Phoenix Triton, a commercial real estate project located in Hyderabad.
Structured as a four-year non-convertible debenture (NCD), the deal features a variable return model linked to the project’s sales performance. The instrument includes both a floor and cap on returns, offering upside potential for investors while aligning with the cash flow cycles of the project’s developer, Phoenix Global Spaces.
Artha Global, which is investing from its Rs 5,000 crore fund, manages distressed asset investments, flexible private credit to Indian businesses, and PE-style investments, including venture debt.
The investment adds to the growing trend of private credit in India, especially in real estate, where developers are looking for more flexible funding options as bank lending becomes stricter and public markets remain slow.
According to PwC, India’s private credit market has grown more than 10x over the past decade and now has assets under management (AUM) nearing $25 billion. Yet, India’s credit-to-GDP ratio remains significantly lower than developed markets, leaving ample headroom for further growth. The firm estimates India could account for 30% of all APAC private credit fundraising by 2025.
Several funds have launched or closed private credit vehicles in just the past months, reflecting growing demand among both investors and borrowers for structured, non-dilutive capital.
Avendus Group raised over Rs 1,000 crore ($118 million) in the first close of its third private credit fund, while Neo Asset Management secured $233 million for its second flagship vehicle. Franklin Templeton marked the first close of its debut India-focused credit AIF at Rs 205 crore.
Synergy Capital raised $715 million in the first close of its third Asia-focused fund, which targets a $1 billion final close with a strong focus on India. Meanwhile, Kotak is reportedly eyeing a $2 billion raise, and InCred recently pulled in $70 million for its special situations strategy.
