India’s private credit market is expanding rapidly, with investments touching $9 billion in H1 2025, up 53% year-on-year.
EAAA India Alternatives Ltd. raised ₹4,500 crore ($510 million) for its first private credit fund that focuses on special situations such as business turnaround cases using money collected entirely from domestic investors.
The fund, which garnered cash from large family offices and wealthy individuals, aims to generate returns in the high teens, said Amit Agarwal, chief executive officer of EAAA, one of India’s largest alternative asset managers. Proceeds from the fundraising will be invested in high-yield debt across industries and used for acquisition financing and corporate recapitalizations too, he said in an interview last week.
India’s private credit market is witnessing rapid growth, fueled in part by hundreds of billions of dollars worth of investments in infrastructure under a major expansion push by Prime Minister Narendra Modi. India’s private debt investments reached $9 billion in the first half of 2025, a 53% increase from the year-earlier period, according to a report by consulting firm EY.
EAAA India had initially planned to raise up to ₹2,500 crore, but received interest of more than ₹5,000 crore from the investors, said Agarwal. The fund closed at 45 billion rupees as the maximum number of unique investors permitted in any alternative investment fund in India is 1,000 only, he said.
EAAA has assets under management of more than ₹62,500 crore, its website shows. The firm is the alternative asset management arm of Edelweiss Financial Services Ltd. founded and led by Rashesh Shah.
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Published on September 2, 2025
