Private credit investments remained flat at $ 3.4 billion in H2 2025 as against $3.3 billion in H2 2024, according to a report by auditing and consultancy firm EY.
However, for the full year 2025, the investments saw a 35% YoY jump in 2025 at $ 12.4 billion, the report said.
Over 35% of capital deployed in H2 2025 was allocated towards refinancing, acquisition financing and capital expenditure, indicating sustained demand for both balance-sheet optimization and growth-oriented funding, EY said.
Real estate received the highest allocation from the private credit funds followed by healthcare and industrial products, with capex funding and refinancing as key drivers, it said adding that during the period. Domestic funds accounted for larger share of investments than foreign funds, it said.
. While deals exceeding $100 million represented 9% of total deal count, they accounted for nearly 36% of aggregate deal value. Notable transactions during the period included $193 million raised by a PharmEasy group entity and $183 million raised by a Shapoorji Pallonji Group entity for refinancing, as well as $182 million secured by the GMR Group for refinancing and other investments across group companies, it said.
Dinkar Venkatasubramanian, partner and leader, debt and special situations, EY India said, “ Domestic private credit platforms were particularly active in the second half, reflecting growing investor confidence and market sophistication. Private credit is now firmly established as a complementary and long-term pillar of India’s evolving credit ecosystem.”
According to its recent survey, 67% of fund managers remain bullish on private credit over the next 2–5 years despite rising competitive intensity. About 45% of the respondents target internal rate of return (IRR) of 12% to 18% while the remaining 55% target 18% to 24%. While real estate continues to lead deal flow, it is also perceived as the riskiest sector by the fund managers.