HDFC Asset Management Ventures into Private Credit with Structured Credit Fund-I

HDFC Asset Management Company has launched the Structured Credit Fund-I to enter the rapidly expanding private credit market, focusing on mid-market companies through alternative debt financing. The International Finance Corporation is contributing Rs 220 crore, with a total targeted corpus of Rs 1,500 crore.

HDFC Asset Management Company (HDFC AMC) has officially stepped into the burgeoning private credit market with the introduction of its Structured Credit Fund-I. The fund aims to provide alternative debt financing to mid-market companies, positioning itself as a key player in a sector often underserved by traditional financing options.

The International Finance Corporation (IFC), part of the World Bank Group, is supporting this initiative as an anchor investor, committing up to Rs 220 crore. This substantial investment marks a significant vote of confidence in HDFC AMC's strategy to fortify India's private credit ecosystem.

The fund boasts an impressive Rs 1,290 crore in commitments and is eyeing a total corpus of Rs 1,500 crore, with an additional green-shoe option of Rs 1,000 crore. With plans to achieve mid-teen returns over a 4-6 year period, HDFC AMC aims to enhance financial accessibility for mid-market firms, thereby fostering job growth and innovation across various sectors.

(With inputs from agencies.)