EAAA India Alternatives Ltd, a unit of India’s Edelweiss Financial Services Ltd, has raised Rs 4,500 ($510 million) for its first private credit fund that focuses on special situations such as business turnaround cases using money collected entirely from domestic investors, Bloomberg reported.
The fund, which garnered cash from large family offices and wealthy individuals, aims to generate returns in the high teens, said Amit Agarwal, chief executive officer of EAAA, one of India’s largest alternative asset managers.
Proceeds from the fundraising will be invested in high-yield debt across industries and used for acquisition financing and corporate recapitalisations, too, he said in an interview with Bloomberg last week.
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.
