Private credit: The rise of a diverse capital solution

Private credit has the potential to serve a larger market need, supplant traditional and alternative pools of capital

Private credit: The rise of a diverse capital solution
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Private credit as a rapidly growing asset class in India is poised to bring transformative change. Its growth is driven by a thriving entrepreneurial ecosystem, a large universe of high-quality businesses, increasing investor awareness and confidence in this asset class, and consistent tax treatment across debt products. For desirable and sustainable investment outcomes over multiple fund cycles, investment managers in this space may need to evolve and adapt to changing market dynamics and emerging opportunities. As it matures, it can transition from being solely a financial product to becoming a versatile capital solution that caters to the capital needs of established businesses.
 
Triggered by the global meltdown of 2008-09 and later events like the IL&FS blowout and the pandemic, the
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First Published: Nov 19 2023 | 11:42 PM IST

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