HDFC AMC has formalized its partnership with the International Finance Corporation (IFC) for its Structured Credit Fund-I, marking a significant milestone in the asset management company's entry into India's rapidly expanding private credit market. The collaboration aims to enhance access to alternative debt financing for mid-market enterprises across various sectors.

Partnership Structure and Investment Commitments

The Structured Credit Fund-I has successfully completed its first close, securing substantial institutional backing. IFC, as the anchor investor and member of the World Bank Group, brings not just capital but also global governance standards, risk frameworks, and deep sectoral expertise to enhance the fund's capabilities.

Investment Strategy and Market Focus

The fund targets mid-teen returns over a 4-6 year investment horizon, focusing on secured credit instruments across diversified sectors excluding real estate. HDFC AMC has already demonstrated active deployment with ₹380.00 crore committed across three deals spanning various sectors to meet diverse capital requirements.

Strategic Objectives and Market Impact

The partnership addresses critical financing gaps in India's mid-market segment, which remains structurally underserved despite being one of the most dynamic pillars of the economy. The fund will provide customized capital solutions with clear risk controls and close engagement with management teams, enabling well-run businesses to scale responsibly.

Navneet Munot, MD & CEO of HDFC AMC, emphasized the shared vision of expanding access to appropriate financing for mid-sized enterprises that drive industrial output, employment and regional development. The collaboration supports India's renewed focus on strengthening manufacturing and advancing the Viksit Bharat vision.

Market Growth Projections

The initiative comes at a strategic time when India's private credit market is projected to experience significant expansion. According to Praxis Global Alliance and IVCA estimates, the market is expected to grow from USD 19.00 billion in 2023 to USD 60.00-70.00 billion by 2028, highlighting the substantial growth opportunity in this sector.

Imad N Fakhoury, Regional Division Director for South Asia at IFC, noted that mid-market companies are central to the Government of India's vision of economic resilience and the World Bank Group's support for financial inclusion, positioning this collaboration as a pathway to job creation and sustainable development.

HDFC AMC has announced a strategic partnership with the International Finance Corporation (IFC) to enhance private credit access for mid-market businesses across India. This collaboration marks a significant step toward addressing the financing challenges faced by mid-sized enterprises in the country.

Strategic Partnership Overview

The partnership between HDFC Asset Management Company and IFC represents a convergence of expertise in asset management and development finance. The collaboration aims to bridge the credit gap that mid-market businesses often encounter when seeking financing solutions beyond traditional banking channels.

Focus on Mid-Market Segment

Mid-market businesses in India have historically faced challenges in accessing appropriate financing solutions. These companies, which fall between small enterprises and large corporations, often require specialized credit products that traditional lenders may not adequately serve. The partnership seeks to address this specific market segment through innovative private credit solutions.

Expected Impact

The collaboration is positioned to create new opportunities for businesses seeking alternative financing options. By combining HDFC AMC's asset management capabilities with IFC's development finance expertise, the partnership aims to develop tailored credit solutions that meet the unique requirements of mid-market enterprises.

Market Significance

This partnership reflects the growing importance of private credit as an alternative financing mechanism in the Indian market. The collaboration between a leading domestic asset management company and an international development finance institution demonstrates the increasing focus on addressing financing gaps in the mid-market segment.