HDFC Asset Management Company has forayed into the fast-growing private credit market with its new Structured Credit Fund-I, targeting mid-market companies with alternative debt financing.
The company announced in its BSE release on Monday that the International Finance Corporation (IFC), a member of the World Bank Group, will invest up to Rs 220 crore as an anchor investor in HDFC AMC’s Structured Credit Fund-I.
Fund secures Rs 1,290 crore in first close
The fund has already secured about Rs 1,290 crore in commitments in its first close, and is targeting a total corpus of Rs 1,500 crore, with a green-shoe option of an additional Rs 1,000 crore.
The commitment amount includes sponsor commitment from HDFC AMC of up to 14% of the fund corpus.
Fund commits Rs 380 crore across three deals
The fund will invest in mid-market companies, and it has already committed Rs 380 crore across three deals spanning various sectors. It will target mid-teen returns over a 4-6 year horizon.
HDFC AMC said that the fund will improve access to finance for underserved mid-market companies by providing alternative debt financing where traditional financing often faces limitations, supporting job creation and driving product and market innovation.
It will also help strengthen India’s private credit ecosystem and support the scale-up of private credit for mid-market companies, HDFC AMC stated.
“Our objective is to offer customised capital with clear risk controls and close engagement with management teams, enabling well-run businesses to scale responsibly while maintaining disciplined underwriting and protecting investor interests. This is the first step in what we hope will be a long and meaningful journey of working together,” said Navneet Munot, MD & CEO of HDFC AMC
“India’s mid-market corporate sector keeps the economy moving, creating jobs and driving regional development. This investment will expand access to private credit, enabling companies to scale, boost innovation, and expand essential services across sectors such as logistics, manufacturing, pharmaceuticals, and e-mobility,” Imad N Fakhoury, Regional Division Director for South Asia at IFC, said.
HDFC AMC share price
The share price of HDFC AMC closed higher in intra-day trade on Monday, up 0.13% at Rs 2,660.75. The stock has increased 5.45% over the past six months. On a year-to-date basis, the stock has gained 0.44%.