New fund · Financial Services
InCred Alternative Investments plans ₹1,500 crore fund
By Startup Enthusiast ·
- Date
- What it does
- Private credit investment arm
- Kind
- New fund
- Amount
- ₹1,500 Cr
- Sector
- Financial Services
What they do
InCred Alternative Investments is the private credit arm of KKR-backed InCred Financial Services
What happened
It plans to raise ₹1,500 crore ($174 million) to lend to small and mid-size companies backed by institutional investors
Why it matters
Its first two credit funds raised ₹1,400 crore and delivered a 16.8% return
The details
- InCred Alternative Investments Pvt, the private credit arm of KKR-backed InCred Financial Services, plans to raise ₹1,500 crore ($174 million) via a new fund.
- The fund will lend to small and mid-size companies, preferably those backed by institutional investors.
- The target internal rate of return (IRR, a measure of annualised profit) for performing credit funds is 16-17%.
- Such funds invest in deals with yields between 12% and 18% in rupee terms.
- The group's chief investment officer is Saurabh Jhalaria.
- India's private-credit market raised a record $9.3 billion in 2024, according to Ernst & Young.
The bigger picture
- The fund targets a 16-17% IRR, which is in line with the yields typical for private credit deals in India.
- InCred's first two credit funds raised ₹1,400 crore and delivered a 16.8% return, showing a track record.
- The fundraise comes as India's private-credit market hit a record $9.3 billion in 2024, indicating strong investor appetite.
About the business
- InCred Alternative Investments is the private credit arm of InCred Financial Services, which is backed by KKR & Co.
- It manages performing credit funds that lend to small and mid-size companies.
- Its first two credit funds raised ₹1,400 crore and delivered a 16.8% return.
What happens next
- The fund will lend to small and mid-size companies, preferably those backed by institutional investors.
The deal
- Type
- fund