IFC And HDFC AMC Partner To Enhance Private Credit Access For India’s Mid-Market Enterprises

International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, has signed an agreement to invest in HDFC AMC’s Structured Credit Fund-I, a Category II AIF, to expand access to private credit for India’s mid-market corporate sector.

The Fund will improve access to finance for underserved mid-market companies by providing alternative debt financing where traditional financing often faces limitations, supporting job creation and driving product and market innovation. It will also help strengthen India’s private credit ecosystem and support the scaleup of private credit for mid-market companies.

As the anchor investor, IFC will contribute up to INR 220 Crore to the fund. The fund has declared its first close and has raised commitments of about INR 1,290 crore from institutional investors, family offices and UHNI investors. The fund is targeting a corpus of INR 1,500 crore, and expects to exercise a portion of the available green-shoe option of INR 1,000 crore. The commitment amount includes sponsor commitment from HDFC AMC of up to 14 percent of the fund corpus. With a focus on delivering superior risk-adjusted, mid-teen returns over a 4-to-6-year horizon, the fund will invest in secured credit instruments in a diversified, sector-agnostic manner (excluding real estate). The fund has committed INR 380 crore across three deals spanning various sectors to meet diverse capital requirements.

The partnership reflects a shared conviction that sustaining and scaling the momentum of India’s growth-stage companies—which power the country’s output, jobs, and supply-chain resilience—depends on access to timely, flexible and well-structured credit to deepen their impact and support their next stage of growth. The growing demand for bespoke financing presents an opportunity for private credit platforms to play a meaningful developmental and commercial role.

For HDFC AMC, the association brings not just capital but also global governance standards, risk frameworks, and deep sectoral expertise that will enhance the fund’s ability to engage closely with companies and design financing aligned with long-term value creation.

“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

“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.

The collaboration comes at a time when India’s economic fundamentals remain strong. With a robust pipeline of companies across sectors, the fund is positioned to provide a critical financing bridge that allows businesses to scale without compromising operational stability. Together, IFC and HDFC AMC bring formidable strengths in credit and risk management, providing a strong foundation to contribute to the next phase of growth in India’s private credit market, which is projected to expand from USD 19 billion in 2023 to USD 60–70 billion by 2028*.

About HDFC AMC

Incorporated in 1999, HDFC Asset Management Company Limited (HDFC AMC), offers a comprehensive suite of savings and investment products ranging from mutual funds, including both actively managed and passive options, to portfolio management services and alternative investment opportunities catering to the needs of a large and diverse customer base.

HDFC AMC is the Investment Manager to HDFC Mutual Fund, one of the largest mutual funds in the country with AUM of Rs 8.73 trillion as on September 30,2025. HDFC AMC proudly serves a mutual fund customer base of 14.5 million unique investors, with a total of 26.0 million live accounts. HDFC AMC has a vast network of 280 offices, over 1,03,000 distribution partners and modern digital platforms, enabling it to serve clients across India.

HDFC AMC also acts as the Investment Manager to HDFC AMC Select AIF FoF – I, a scheme launched by HDFC AMC AIF-II with total corpus of INR 12.31 billion as on September 30, 2025.

Further, HDFC AMC is registered with SEBI as a Portfolio Manager for undertaking Portfolio Management Services with AUM of INR 49.25 billion as on September 30, 2025.

Disclosure of AUM - As on 30-Sep-2025.xlsx

For more information, please visit the company’s website at www.hdfcfund.com.

*Source: Praxis Global Alliance and IVCA estimates, December 2023 report.