New Delhi: The International Finance Corporation (IFC), part of the World Bank Group, has partnered with HDFC Asset Management Company (HDFC AMC) to expand access to private credit for India’s mid-market companies, at a time when demand for alternative financing is rising.
Under the agreement, IFC will invest up to ₹220 crore as the anchor investor in HDFC AMC’s Structured Credit Fund–I, a Category II alternative investment fund focused on providing secured credit to mid-sized corporates across sectors, excluding real estate, HDFC AMC said in a press release on Saturday.
The fund has declared its first close, raising commitments of around ₹1,290 crore from institutional investors, family offices and ultra-high-net-worth individuals. It is targeting a total corpus of ₹1,500 crore and is expected to exercise a portion of its green-shoe option of ₹1,000 crore. Sponsor commitment from HDFC AMC will be up to 14% of the fund corpus.
The structured credit fund aims to deliver mid-teen, risk-adjusted returns over a 4–6 year investment horizon by investing in secured credit instruments in a diversified, sector-agnostic manner. So far, it has committed ₹380 crore across three deals to meet varied capital requirements of growth-stage companies.
According to the company, the partnership seeks to address financing gaps faced by mid-market enterprises, which often struggle to access timely and flexible credit from traditional channels. IFC’s participation is also expected to bring global governance standards, risk frameworks and sector expertise to the fund’s investment process.
Commenting on the development, Navneet Munot, MD & CEO of HDFC AMC, said the collaboration aligns with a shared objective of enabling well-governed mid-sized companies to scale responsibly through tailored financing solutions, while maintaining disciplined underwriting and investor protection. IFC said the investment would help strengthen India’s private credit ecosystem and support job creation and innovation across sectors such as manufacturing, logistics, pharmaceuticals and e-mobility.