IFC, HDFC AMC Tie Up to Boost Private Credit for Mid-Market Firms
ECONOMY & POLICY

IFC, HDFC AMC Tie Up to Boost Private Credit for Mid-Market Firms

International Finance Corporation (IFC) and HDFC Asset Management Company (HDFC AMC) have partnered to expand access to private credit for India’s mid-market enterprises through HDFC AMC’s Structured Credit Fund-I, a Category II alternative investment fund (AIF).

Under the agreement, IFC will invest up to Rs 2.20 billion as the anchor investor in the fund, which seeks to address funding gaps faced by mid-sized companies where traditional financing options are limited. The initiative is expected to support job creation, innovation, and the scaling up of businesses across sectors, while strengthening India’s private credit ecosystem.

The fund has announced its first close, raising commitments of around Rs 12.90 billion from institutional investors, family offices and ultra-high-net-worth individuals. It is targeting a corpus of Rs 15 billion and plans to exercise part of a Rs 10-billion green-shoe option. The commitments include a sponsor contribution of up to 14 per cent of the fund corpus from HDFC AMC.

Focused on delivering mid-teen, risk-adjusted returns over a four-to-six-year horizon, the fund will invest in secured credit instruments on a diversified, sector-agnostic basis, excluding real estate. It has already committed Rs 3.80 BILLION across three deals spanning multiple sectors.

Navneet Munot, MD & CEO, HDFC AMC, said, “We thank all our investors for the confidence they have placed in us and are pleased to welcome IFC as a partner and the anchor investor in our first Structured Credit Fund… Through this fund, supported by our experienced investment team, our objective is to offer customised capital with clear risk controls and close engagement with management teams.”

Imad N Fakhoury, Regional Division Director for South Asia, IFC, said, “India’s mid-market corporate sector keeps the economy moving, creating jobs, and driving growth and regional development… This collaboration will help mobilize institutional capital and provide mid-market companies with the resources they need to thrive.”

The partnership comes amid strong economic fundamentals, with India’s private credit market projected to grow sharply over the next few years.

International Finance Corporation (IFC) and HDFC Asset Management Company (HDFC AMC) have partnered to expand access to private credit for India’s mid-market enterprises through HDFC AMC’s Structured Credit Fund-I, a Category II alternative investment fund (AIF).Under the agreement, IFC will invest up to Rs 2.20 billion as the anchor investor in the fund, which seeks to address funding gaps faced by mid-sized companies where traditional financing options are limited. The initiative is expected to support job creation, innovation, and the scaling up of businesses across sectors, while strengthening India’s private credit ecosystem.The fund has announced its first close, raising commitments of around Rs 12.90 billion from institutional investors, family offices and ultra-high-net-worth individuals. It is targeting a corpus of Rs 15 billion and plans to exercise part of a Rs 10-billion green-shoe option. The commitments include a sponsor contribution of up to 14 per cent of the fund corpus from HDFC AMC.Focused on delivering mid-teen, risk-adjusted returns over a four-to-six-year horizon, the fund will invest in secured credit instruments on a diversified, sector-agnostic basis, excluding real estate. It has already committed Rs 3.80 BILLION across three deals spanning multiple sectors.Navneet Munot, MD & CEO, HDFC AMC, said, “We thank all our investors for the confidence they have placed in us and are pleased to welcome IFC as a partner and the anchor investor in our first Structured Credit Fund… Through this fund, supported by our experienced investment team, our objective is to offer customised capital with clear risk controls and close engagement with management teams.”Imad N Fakhoury, Regional Division Director for South Asia, IFC, said, “India’s mid-market corporate sector keeps the economy moving, creating jobs, and driving growth and regional development… This collaboration will help mobilize institutional capital and provide mid-market companies with the resources they need to thrive.”The partnership comes amid strong economic fundamentals, with India’s private credit market projected to grow sharply over the next few years.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code