<p>Mumbai: Private credit deployments are likely to surpass the $10 billion mark in 2024, a report by a consultancy firm said on Wednesday.</p>.<p>The January-June period saw private credit transactions of over $6 billion in 96 deals, and the last two-and-a-half years have seen over $20 billion being deployed in the emerging alternative serving the credit needs of Indian companies.</p>.Consumption loan portfolio expands 15% to Rs 90 lakh cr in FY'24: Report.<p>Major deals were witnessed across real estate, infrastructure, and healthcare sectors in the first half of the year, the report by EY said.</p>.<p>Domestic funds are gaining traction and market share in the private credit space leveraging local expertise and the influence of lower-cost domestic money, it said.</p>.<p>The first half of the year saw Reliance Logistics and Warehousing, Vedanta Semiconductors, and Matrix Pharma collectively raising approximately $1.3 billion, while real estate sector continued to be a focal point with borrowers such as Prestige Group, Puravankara Group, Kalpataru Group, and Shapoorji Group being active.</p>.<p>The firm's partner Bharat Gupta said private credit investments are at an all-time high, driven largely by growth-oriented strategies.</p>.<p>"The outlook remains promising, though thorough due diligence and effective deal oversight are crucial to maximizing returns and managing potential risks," Gupta added.</p>.<p>With the maturing of the system, there is a subtle shift towards performing credit deals in India with funds increasingly engaging in sub-18per cent Internal Rate of Return transactions, the report said.</p>.<p>In the high-yield segment, mergers and acquisitions/buyout deals, and bridge-to-initial public offering transactions have gained traction within private credit funding, it said.</p>.<p>High-net-worth investors and family offices are increasingly participating in private credit as a key asset class, boosting the popularity of domestic funds, it said.</p>
<p>Mumbai: Private credit deployments are likely to surpass the $10 billion mark in 2024, a report by a consultancy firm said on Wednesday.</p>.<p>The January-June period saw private credit transactions of over $6 billion in 96 deals, and the last two-and-a-half years have seen over $20 billion being deployed in the emerging alternative serving the credit needs of Indian companies.</p>.Consumption loan portfolio expands 15% to Rs 90 lakh cr in FY'24: Report.<p>Major deals were witnessed across real estate, infrastructure, and healthcare sectors in the first half of the year, the report by EY said.</p>.<p>Domestic funds are gaining traction and market share in the private credit space leveraging local expertise and the influence of lower-cost domestic money, it said.</p>.<p>The first half of the year saw Reliance Logistics and Warehousing, Vedanta Semiconductors, and Matrix Pharma collectively raising approximately $1.3 billion, while real estate sector continued to be a focal point with borrowers such as Prestige Group, Puravankara Group, Kalpataru Group, and Shapoorji Group being active.</p>.<p>The firm's partner Bharat Gupta said private credit investments are at an all-time high, driven largely by growth-oriented strategies.</p>.<p>"The outlook remains promising, though thorough due diligence and effective deal oversight are crucial to maximizing returns and managing potential risks," Gupta added.</p>.<p>With the maturing of the system, there is a subtle shift towards performing credit deals in India with funds increasingly engaging in sub-18per cent Internal Rate of Return transactions, the report said.</p>.<p>In the high-yield segment, mergers and acquisitions/buyout deals, and bridge-to-initial public offering transactions have gained traction within private credit funding, it said.</p>.<p>High-net-worth investors and family offices are increasingly participating in private credit as a key asset class, boosting the popularity of domestic funds, it said.</p>