Private Credit Investments Surge 35% to $12.4 Billion in 2025

Private credit investments surged 35% to $12.4 billion in 2025, despite a lull in the second half of the year, a report revealed. The real estate and healthcare sectors were the primary borrowers, making private credit an increasingly attractive alternative for entities unable to meet their funding needs through traditional banking channels.

While deal activity moderated in the second half of 2025 after a strong first half, the calendar year still closed with $12.4 billion across 166 transactions, marking a 35% year-on-year growth in value. Vishal Bansal, a partner for debt and special situations at EY India, commented, “While deal activity moderated in H2 2025 after a strong first half, calendar year 2025 closed at $12.4 billion across 166 transactions, reflecting a 35% year-on-year growth in value.”

The overall deployments in H2 2025 were marginally higher at $3.4 billion compared to $3.3 billion in the same period the previous year. More than 35% of the capital deployed in H2 2025 was allocated towards refinancing, acquisition financing, and capital expenditure, indicating a sustained demand for both balance-sheet optimization and growth-oriented funding.

Notably, deals exceeding $100 million represented just 9% of the total deal count but accounted for nearly 36% of the aggregate deal value. Some of the major transactions during July-December included:

- A PharmEasy group entity raising $193 million for refinancing purposes. - A Shapoorji Pallonji Group entity securing $183 million for refinancing. - The GMR Group raising $182 million for refinancing and further investments across group companies.

These transactions highlight the growing importance of private credit in the Indian market, particularly for sectors like real estate and healthcare. As traditional banking channels face constraints, private credit is emerging as a vital source of liquidity and growth capital.

The rise in private credit investments is also a reflection of the changing financial landscape, where alternative financing options are becoming increasingly popular. This trend is expected to continue, driven by the need for flexible and innovative funding solutions in a rapidly evolving economic environment.

For investors, private credit offers attractive returns and diversification benefits, making it an appealing addition to their portfolios. As the market continues to mature, it is likely that we will see more sophisticated and tailored private credit products tailored to meet the specific needs of borrowers and investors alike.

In conclusion, the surge in private credit investments to $12.4 billion in 2025 underscores the growing importance of this sector in the Indian financial landscape. With real estate and healthcare leading the way, the future of private credit looks promising, offering both challenges and opportunities for stakeholders in the market.