Welcome to our ‘Fund in Focus’ series where we spotlight IVCA member funds, unpack their investment philosophy, and explore how they are shaping India’s capital landscape. In this edition, Kanchan Jain, Head of Ascertis Credit Group, reflects on the firm’s evolution into an independent private credit platform, the structural rise of direct growth lending in India, and why underwriting discipline, local execution, and long-term capital alignment are defining the next phase of India’s private credit journey.
Building with Certainty: Kanchan Jain on the Maturing Arc of India’s Private Credit Market
Spokesperson: Kanchan Jain, Head of Ascertis Credit Group
1. Ascertis Credit recently rebranded from BPEA Credit. Beyond the name change, what does this transition signal about the firm’s long-term vision and evolution as a private credit platform in Asia?
We have been pioneers in the direct lending and performing private credit space in India and over the past decade, have significantly scaled the business over multiple funds, anchored in our unique sourcing workflow, disciplined underwriting process, unique combination of global credit experience and deep local expertise, and consistent outcomes across market cycles.
As the leadership and investment team completed a decade of successful investing with over US$ 1billion of invested capital, it became essential that our identity reflects our capabilities, commitment and our long term vision. The new name, Ascertis Credit, signifies the firm’s commitment to its legacy of domain confidence, professional expertise and strategic strength, coupled with delivering certainty and transparency through our rigorous processes and robust risk management, aligning perfectly with our vision for future growth.
This transition also signals our ambition to build an independent, institutionally scaled best-in-class, India-focused private credit platform serving the singular goal of delivering top-tier credit solutions and investment returns to our investee companies and investors, respectively.
2. From your vantage point, where does India currently sit in its private credit journey compared to more mature global markets?
India represents the fastest growing private credit market in Asia and globally having scaled to c. US$ 25-30 billion in less than a decade. India now makes up c. 30-35% of APAC’s private credit market, up sharply from single digits, putting it on par with Australia’s mature market. Together with Australia, it accounts for more than half of the private credit market in Asia. What is notable about India’s emergence as a strong private credit market, is firstly, the role of a stable regulatory regime and significant reforms in creating a favourable landscape for private credit, and secondly the role of private credit in mobilising a significant source of new capital to fill in the structural gap and fund the growth capital needs of one of the largest growing economies globally.
Private credit is now an established and credible source of capital for companies, rather than a niche or episodic solution. Our own experience has shown its ability to consistently unlock significant growth prospects for high growth companies across their lifecycles and across a wide variety of sectors, making its impact far reaching and sustainable. Participation and appetite of significant institutional investors and allocators of capital has steadily increased making, institutionalising the market further.
In contrast to late cycle dynamics and a near-commoditised asset class with normalised returns in developed markets, Indian private credit offers a long runway for growth, with attractive risk adjusted returns driven by structural credit gaps to established corporates. From our perspective, Indian private credit will remain one of the key markets in APAC for the coming decade.
3. With Fund IV targeting USD 1 billion and achieving one of the largest first closes in India’s private credit market, what structural shifts have enabled funds of this scale today?
India’s sustained economic growth has driven the emergence of larger, more professionally managed mid market companies that are increasingly ambitious in scale and capital requirements, creating demand for larger and more sophisticated financing solutions. With strong growth prospects, there is an increasing need, and preference for non-dilutive capital solutions, exceeding the need for equity solutions for such companies. Private credit solutions allow such companies to control the timing of IPOs or equity dilutions at a time and size that is optimal for strong sustainable valuations.
At the same time, banks have become more disciplined and selective about how they deploy capital, which has created a genuine need for alternative sources of long-term credit. Banks have also increasingly realized the more complementary role private credit plays in a company’s funding model, often partnering with established and pedigreed private credit funds to meet the capital needs of deserving corporates.
On the investor side, there is far greater comfort today with private credit as an asset class, particularly when it is backed by a long operating track record across multiple funds and vintages. Investors are looking for yield, but equally for predictability and capital protection. Supported by a stronger insolvency framework, clearer AIF regulations, and rising allocations from global and domestic institutional investors seeking exposure to India’s growth, have enabled private credit platforms to scale meaningfully and support funds of this size.
4. With regulatory changes such as banks being permitted to fund acquisitions, how do you see collaboration between banks and private credit funds evolving over the next few years?
We view this as a positive development for the ecosystem. Banks and private credit funds serve different but complementary roles. Banks are well suited to providing lower-cost capital at scale, while private credit funds bring flexibility, structuring capability, and the ability to move quickly in more complex situations.
As regulations evolve, we expect to see more co-lending, syndication, and structured partnerships, particularly in acquisition financing and growth-related transactions. For borrowers, this means access to better thought-out capital structures rather than having to rely on a single source of funding. Over time, this collaboration should make the overall credit market more resilient.
5. What underwriting or risk management principles have been most critical in helping Ascertis navigate market cycles over the last 11 years?
Over the last 11 years, we have built a robust underwriting and risk management framework with well established, institutionalized, and cycle tested policies and processes. This approach has delivered consistent, attractive returns and strong liquidity across multiple market cycles. Our sourcing and underwriting philosophy is adapted for mid-market opportunities across sectors through appropriate vendor partnerships, robust workflows and maker-checker frameworks.
Our proactive risk management focuses on preserving investor capital and regulatory compliance, with emphasis on proactive monitoring, early intervention and senior oversight on every investment at all times. Just as importantly, continuity in leadership and disciplined investment philosophy has allowed us to act upon and institutionalize learnings over the years and adapting our processes as market conditions evolve.
6. Where are you seeing the strongest demand for private credit today—by sector or by use case—and how has this evolved from earlier funds?
We see strong demand for private credit from mid-market companies from all high growth sectors across Services (Education, Healthcare, etc.), Manufacturing, Infrastructure & Logistics, Real Estate and Financial Services. From an end-use perspective, demand has shifted towards growth capital solutions, as borrowers prioritise certainty of capital & execution, flexibility, and long term solutions over short term fixes and restricted banking solutions for their needs.
This marks a clear evolution from earlier funds, where private credit was more frequently used for smaller, opportunistic, or bridge style transactions. As the market has matured, deal sizes have increased materially, and private credit is increasingly being used to support bespoke, large ticket transactions and balance sheet optimisation.
7. Direct growth lending has been a core focus for Ascertis. Why does this segment continue to be particularly compelling in the Indian context?
Direct lending continues to be a compelling opportunity in India as its underpinned by strong underlying economic growth and a persistent structural credit gap. Any large economy needs multiple forms of debt capital to meet the needs of a growing and more dynamic corporate sector. As mid market and large Indian corporates scale rapidly, many of their capital needs—such as capex, acquisitions, or platform build outs—are not adequately served by traditional bank lending, which has become increasingly selective and restrictive.
In this environment, direct lending provides a flexible, bespoke source of long term capital that enables businesses to scale without dilution, while offering private credit funds strong downside protection through contractual returns, robust structures, covenants, and clear cash flow visibility. As the market has matured, direct lending has evolved from an opportunistic solution into a core financing option for established, high growth companies seeking certainty of execution and a long term capital partner—making it a resilient opportunity across market cycles in India.
8. How important is on-the-ground presence and local execution capability when global capital allocates to India-focused private credit strategies?
On the ground presence and local execution capability are critical when global capital allocates to India focused private credit strategies. India is a complex market where deal sourcing, underwriting quality, structuring, and ongoing monitoring are heavily dependent on local insight, proximity to borrowers, and a deep understanding of regulatory, legal, and business nuances.
Local teams enable deeper diligence with understanding of local nuances, faster decision-making, and active portfolio monitoring, particularly important in private credit, where lender engagement does not end at disbursement. Strong local execution also allows for more bespoke structuring, tailored to the realities of each business.
9. Are you seeing changes in borrower behaviour or capital structuring preferences in the current market environment?
Yes, we are seeing a clear shift in both borrower behavior and capital structuring preferences. Borrowers today are increasingly prioritizing non-dilutive capital solutions, speed and certainty of execution and customization and flexibility of the solution, rather than just the lowest cost of capital. Private credit has evolved from an opportunistic solution into first call capital, with established borrowers now prioritizing long term partnerships and predictable execution through market cycles.
10. Finally, what advice would you offer Indian mid-market companies considering private credit for the first time as part of their growth journey?
For Indian companies considering private credit solutions, the most important starting point should be to view private credit as a long-term component and source of growth capital rather than a short-term capital solution. Private credit works best when there is clarity on the company’s growth plan, cash flow profile, and capital needs, and when the financing is structured to support long term value creation rather than short term fixes.
Companies should focus not only on pricing, but on structure, flexibility, and certainty of execution—including covenant design, repayment profiles, and the Fund’s ability to support the business across cycles. Choosing an experienced, on the ground credit partner with strong underwriting discipline and execution capability can make a meaningful difference, particularly as private credit in India has evolved from an opportunistic solution to a core component of growth financing for established mid-market businesses.