Experts believe that private credit can help diversify investment portfolios. But, it is also important to take note of the risks.
Private credit is one of the most rapidly emerging asset classes in India over the last decade as an alternative investment option. It is growing as a medium of debt financing for startups, performing companies and other special situations.
Talking about the growth of the sector, Karthik Athreya, Director and Head of Strategy, Alternative Credit, Sundaram Alternates, mentions that India is moving in the direction of North American markets where alternate credit is 75-80% of all risk financing versus exactly the opposite in India.
“Proof of the pudding as far as private credit is that the AIF Cat II industry has grown from zero in 2013-14 to ₹6 lakh crores today! The AIF industry as a whole is approx….
