Ascertis Credit has officially launched its fourth private credit fund, setting an ambitious target of $1 billion. The firm has already achieved a significant milestone, raising $520 million in its initial close. This capital was secured from a diverse group of investors, including existing and new institutional investors, family offices, and high-net-worth individuals from both global markets and India, as announced by the firm on Tuesday.

The investment strategy of Ascertis Credit remains consistent: to provide tailored, long-term performing credit solutions. Their primary focus sectors include services, infrastructure, and manufacturing. The firm emphasizes generating low-volatility, attractive risk-adjusted returns for its investors. A substantial portion of the capital raised through this fund is slated for investment in India, a market described by Kanchan Jain, head at Ascertis Credit, as "one of the largest and most exciting markets in Asia." Jain also noted the substantial growth in private credit as a robust asset class in recent times, reiterating the firm's commitment to scaling its investment program and supporting high-growth corporations while delivering consistent value to investors.

This new private credit fund follows the successful final close of Ascertis Credit's ₹1,000 crore short-term income fund earlier this year, which exceeded its initial target by over 25%. While both are investment vehicles, private credit funds and short-term income funds differ considerably in their investment focus, liquidity, accessibility, and risk-return profiles. For instance, short-term income funds typically have a tenure of up to three years, contrasting with the five-year tenure commonly seen in other funds.

Ascertis Credit, which underwent a rebranding from BPEA Credit in 2024, has a decade-long track record in the private-credit platform, having invested over $1.5 billion across three previous funds. The sizes of its prior funds were $82 million, $140 million, and $475 million, respectively. The firm boasts over 40 exits across its funds, claiming to have achieved returns in the high teens. India consistently contributes the majority of its business and remains the largest market for the firm, though Southeast Asia is also a crucial segment. Ascertis manages capital for prominent global pension funds and developmental financial institutions, alongside a wide array of Asian and Indian family offices, and maintains offices in Delhi, Mumbai, and Singapore.

The broader Indian private credit market is experiencing a significant surge in demand, largely due to a limited supply of financing from traditional banks and non-banking financial companies (NBFCs). According to an August report by consulting firm EY, the country's private credit market witnessed a sharp rise in deal activity, with total deployments reaching $9 billion across 79 deals (exceeding $10 million) in the first half of 2025. This represents a 53% increase over the same period in the previous year, driven by stable interest rate expectations and the funding gaps left by banks in key sectors such as infrastructure and real estate.

Several other prominent players are also actively targeting opportunities within the Indian private credit space. These include ASK Group, True North, Edelweiss, and Multiples Alternate Asset Management. Furthermore, the National Investment and Infrastructure Fund (NIIF) has a $2 billion plan to attract global capital, while Motilal Oswal, Prabhudas Lilladhar, and Vivriti Asset Management collectively aim to raise over $600 million through new funds focused on performing credit and mid-market investments. Blackstone Group and Bandhan AMC are also in the process of launching new investment platforms. While global funds remain dominant, domestic funds typically concentrate on mid-market and opportunistic deals within the private credit market.