Global investment manager Franklin Templeton Alternative Investments has announced the first close of its debut credit-focused alternative investment fund (AIF) in India, securing over Rs 205 crore ($24 million) for Franklin India Credit AIF – Scheme I.
The fund, which targets a total corpus of Rs 1,000 crore ($120 million), will invest across debt securities, including primary issuances and secondary market purchases.
The fund will focus largely on secured instruments such as debt, mezzanine securities, pass-through certificates, and market-linked debentures. A significant portion of the investments is expected to flow into the financial services sector, particularly non-banking finance companies (NBFCs) and housing finance companies (HFCs).
The investment team is led by Santosh Kamath, CIO and President of Franklin Templeton Alternative Investments (India), and Arun Gupta, Head of Investments.
The launch adds to Franklin Templeton’s global alternatives platform, which manages more than $250 billion across strategies including private credit, private equity, real estate, venture capital, and digital assets. The broader Franklin Templeton group oversees $1.53 trillion in assets as of March 31, 2025.
The investment comes at a time when mid-market companies are increasingly attracting private credit, as traditional equity financing tightens amid a volatile funding environment.
