HDFC AMC Enters Private Credit With Structured Debt Fund

The International Finance Corporation, a member of the World Bank Group, will invest up to Rs 2.2 billion as an anchor investor in the fund, HDFC AMC said in a statement.

The fund has secured commitments of around Rs 12.9 billion in its first close and is targeting a total corpus of Rs 15 billion, with a green-shoe option to raise an additional Rs 10 billion. This includes a sponsor commitment from HDFC AMC of up to 14 per cent of the fund corpus.

Structured Credit Fund-I will focus on lending to mid-market companies and has already committed Rs 3.8 billion across three deals spanning multiple sectors. The fund is targeting mid-teen returns over an investment horizon of four to six years.

According to HDFC AMC, the fund is designed to improve access to finance for underserved mid-market companies by offering alternative debt solutions in areas where traditional financing faces constraints. The asset manager said this approach would support job creation while enabling product and market innovation.

The fund is also expected to contribute to the strengthening of India’s private credit ecosystem and support the scaling up of alternative debt financing for mid-market enterprises, the company added.