The International Finance Corporation (IFC), a member of the World Bank Group and the world’s largest development institution focused on the private sector in emerging markets, has entered into an agreement to invest in HDFC AMC’s Structured Credit Fund–I, a Category II Alternative Investment Fund (AIF). The partnership aims to strengthen access to private credit for India’s underserved mid-market corporate segment.
The fund seeks to address financing gaps faced by mid-sized companies by offering alternative debt solutions where traditional banking channels often fall short. By enabling flexible, well-structured credit, the initiative is expected to support job creation, foster product and market innovation, and contribute to the broader development of India’s private credit ecosystem.
As the anchor investor, IFC will commit up to ₹220 crore to the fund. The fund has announced its first close, having raised approximately ₹1,290 crore from a diverse base of institutional investors, family offices, and ultra-high-net-worth individuals (UHNIs). It is targeting a total corpus of ₹1,500 crore, with plans to utilise a portion of the available green-shoe option of ₹1,000 crore. The total commitments include a sponsor contribution from HDFC AMC of up to 14% of the fund corpus.
Focused on delivering superior risk-adjusted, mid-teen returns over a four- to six-year investment horizon, the fund will invest in secured credit instruments across a diversified, sector-agnostic portfolio, excluding real estate. To date, it has already committed ₹380 crore across three transactions spanning multiple sectors, addressing varied capital requirements.
The collaboration underscores a shared belief that sustaining and scaling India’s growth-stage companies—key drivers of output, employment, and supply-chain resilience—depends on timely, flexible, and appropriately structured financing. As demand for bespoke credit solutions continues to rise, private credit platforms are increasingly positioned to play a meaningful role in both economic development and commercial value creation.
Beyond capital, IFC’s participation brings global best practices in governance, risk management, and sector expertise, enhancing the fund’s ability to work closely with portfolio companies and design financing solutions aligned with long-term value creation.
Commenting on the partnership, Navneet Munot, MD & CEO, HDFC AMC, said the association reflects a shared vision to expand access to tailored financing for mid-sized enterprises that drive industrial growth, employment, and regional development. He highlighted that while India’s mid-market segment remains one of the most dynamic pillars of the economy, it continues to be structurally underserved, making customised credit solutions critical to its next phase of growth.
Imad N. Fakhoury, Regional Division Director for South Asia, IFC, noted that India’s mid-market companies are central to economic resilience, job creation, and regional development. He added that IFC’s investment will help expand private credit access across sectors such as logistics, manufacturing, pharmaceuticals, and e-mobility, while mobilising institutional capital to strengthen India’s financial ecosystem.
The partnership comes at a time when India’s economic fundamentals remain robust. With a strong pipeline of opportunities across sectors, the fund is well positioned to act as a critical financing bridge—enabling businesses to scale sustainably without compromising operational stability. Together, IFC and HDFC AMC bring deep expertise in credit underwriting and risk management, laying a strong foundation for the next phase of growth in India’s private credit market, which is projected to expand from USD 19 billion in 2023 to USD 60–70 billion by 2028
