Domestic Funds Double Share of India's Private Credit Deals in H1 2026

Domestic Dominance In the first half of 2026, domestic private credit funds captured a striking 74% of the total deal value in India, a sharp rise from the 32% share recorded in the same period a year earlier. EY’s analysis of 102 transactions exceeding $10 million shows a cumulative value of approximately $3.5 billion, underscoring the growing appetite of Indian managers for larger, more complex deals.

Global Players Still Engaged Despite the surge of local capital, global firms such as Bain Capital and Davidson Kempner continue to play a role in the market. Bain provided $176 million to Kalpataru Properties Ltd. and $150 million to GMR Group, while Davidson lent $156 million to HyFun Foods during H1 2026. These investments highlight that international managers remain interested, even as Indian firms expand beyond traditional mid‑market opportunities.

Liquidity Resilience and New Capital India’s private credit market benefits from a closed‑ended structure, where capital is typically locked for the life of the fund and leverage is capped. This design shields managers from sudden redemption pressure, a contrast to U.S. funds that faced over $20 billion in withdrawal requests in early 2026. Local managers are also adding fresh dry powder, with Kotak Alternate Assets raising $691 million for a real‑estate fund and $496 million for its Yield & Growth Fund, and Avendus securing $290 million for a structured credit fund. As Indian banks eye acquisition financing, the competition for high‑quality deals may intensify further.