Mumbai: The International Finance Corporation (IFC), a leading global development institution focusing on growing private sector investments in emerging markets and a member of the World Bank Group, has signed an agreement to invest in HDFC AMC’s Structured Credit Fund-I, aiming to expand credit access to mid market companies.
The Category II AIF, will improve access to finance for underserved mid market companies by providing them with alternative debt financing that supports job creation, and product innovation. To help strengthen India’s private credit ecosystem, the IFC will contribute about ₹ 220 crore to the fund, which has already raised ₹1,290 crore from leading institutional investors, ultra high net worth individuals (UHNIs) and family offices. The fund has almost reached its corpus of ₹1,500 crore, with HDFC AMC also having an option to raise to raise an additional ₹1000 crore in case of excess demand.
The fund is expecting to deliver superior risk-adjusted, mid-term returns over about 4-6 years, with investments in secured credit instruments across sectors except real estate. So far, it has committed ₹ 380 crore across 3 deals.
“We thank all our investors for the confidence they have placed in us and are pleased to welcome IFC as a partner and the anchor investor in our first Structured Credit Fund. Our partnership with IFC is rooted in a shared vision of expanding access to appropriate financing for mid-sized enterprises that drive industrial output, employment and regional development. India’s mid-market segment is one of the most dynamic pillars of our economy, yet it remains structurally underserved. India’s renewed focus on strengthening manufacturing and advancing the Viksit Bharat vision further underscores the importance of enabling this segment. Many of these companies have strong governance, robust business models and meaningful growth potential, but often require tailored solutions. Through this fund, supported by our experienced investment team, our objective is to offer customised capital with clear risk controls and close engagement with management teams, enabling well-run businesses to scale responsibly while maintaining disciplined underwriting and protecting investor interests. This is the first step in what we hope will be a long and meaningful journey of working together.” Navneet Munot, MD & CEO, HDFC AMC said in a press release.
“India’s mid-market corporate sector keeps the economy moving, creating jobs, and driving growth and regional development. This investment will expand access to private credit, enabling companies to scale their operations, boost innovation, and expand essential services, supporting sectors ranging from logistics and manufacturing to pharmaceuticals and e-mobility. Mid-market companies are central to the Government of India’s vision of economic resilience and the World Bank Group’s support for financial inclusion. IFC’s programmatic approach builds on this shared priority by scaling MSMEs and mid-sized enterprises as a pathway to job creation and sustainable development. HDFC Group has long been a valued partner, and this collaboration will help mobilize institutional capital and provide mid-market companies with the resources they need to thrive, contributing to a robust financial ecosystem and advancing India’s development priorities.” Imad N Fakhoury, Regional Division Director for South Asia, IFC added.
