Opening
360 ONE Asset Management, a Mumbai-based investment firm, is seeking up to US$500 million for its sixth private credit fund, which is planned to launch in June 2026 and will target wealthy individuals, family offices, and overseas institutions. The fundraising activity occurs as the global US$1.8 trillion private credit market faces a slowdown amid concerns over loan quality and exposure to software borrowers. India has remained active in private credit fundraising, distinguishing itself from the broader market deceleration.
## Fund Details and Investment Focus
The new vehicle will finance mid-sized firms and special situations including acquisition funding, refinancing, and stake buyouts. This follows 360 ONE's closure of its fifth private credit fund at approximately US$400 million in March 2025.
## India's Private Credit Market Activity
India's private credit sector has demonstrated continued momentum despite global headwinds. Lighthouse Canton launched a 12 billion rupees (US$124 million) fund in May 2025, and InCred Alternative Investments closed a 15 billion rupees (US$156 million) special situations credit fund in April 2025.
India's private credit assets under management expanded significantly, rising from less than US$0.7 billion in 2010 to US$17.8 billion in 2023. In the first half of 2025, funds deployed US$9.0 billion, already exceeding the full-year deal value for 2024.
## Regulatory and Market Framework
India's private credit market operates under the Insolvency and Bankruptcy Code (IBC), which serves as the primary framework for resolving corporate distress. The IBC has reduced debt resolution times from an average of 4.3 years to approximately one to two years.
Private credit funds operating as Alternative Investment Funds (AIFs) face structural constraints compared to banks and Non-Banking Financial Companies (NBFCs). AIFs lack certain legal powers to enforce security and cannot access the Reserve Bank of India's out-of-court restructuring process, leaving them more reliant on the IBC to protect loan and debt investments. Regulators have also implemented restrictions preventing banks or NBFCs from swapping direct loan exposure for indirect exposure through AIF units, a measure designed to curb ever-greening of loans—the practice of extending troubled debt to avoid booking losses.
