InCred Alternative Investments, the private credit platform of KKR-backed InCred Financial Services, is set to raise INR15bn ($174m) for its latest credit fund as it looks to capitalise on rising demand for private credit in India, according to a report by Bloomberg.
The report cites Saurabh Jhalaria, Group CIO at InCred, as confirming in a recent interview that the firm’s third fund will focus on lending to small and mid-sized businesses, with a preference for companies backed by institutional investors.
The raise comes amid a record-breaking year for India’s private credit market, which attracted $9.3bn in 2023, according to Ernst & Young, reflecting growing interest from borrowers and investors alike.
“We’re targeting an internal rate of return (IRR) of 16–17% for our performing credit strategy,” said Jhalaria, noting that such deals typically offer rupee-denominated yields between 12% and 18%.
InCred’s prior two private credit funds raised a combined INR14bn and delivered an IRR of 16.8%.
