Chart of the week: Positive future for Indian private debt

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The private debt market is expanding on a global scale and emerging economies such as India are feeling the benefits of fund managers and investors looking for new opportunities.

Private Debt Investor reported this week that CPPIB is entering a $525 million partnership with Kotak Mahindra Group to invest capital into Indian stressed assets, while AION Capital Partners and a team of former GE executives are purchasing GE Capital’s commercial lending and leasing business in the country.

PDI’s Research & Analytics team have looked at fundraising for closed-ended vehicles investing into the Indian private debt space to determine whether the numbers reflect the positive sentiment.

This year, $775 million has been raised from the close of two India-targeting private debt funds. Alongside the Kotak and CPPIB partnership mentioned, Kotak India Realty Fund III closed at $250 million this month.

Fundraising in 2016 is more than three times greater than aggregate capital gathered last year, suggesting that interest in the market is already showing in the figures. With 24 vehicles on the road targeting $9.13 billion collectively, it seems that Indian private debt will continue to grow.