ASK Alternates Targets ₹2,500 Crore Through New Private Credit Fund

ASK Alternates has launched its 2nd private credit fund with a target size of ₹2,500 crore, as per The Mint report. The fund includes a base issue of ₹1,000 crore and a greenshoe option of ₹1,500 crore.  

The company operates under the ASK Asset & Wealth Management Group, which is backed by Blackstone. 

The fund will continue ASK Alternates’ strategy of providing secured credit to established businesses. The company said it will focus on lending backed by tangible assets and avoid exposure to real estate, distressed debt, venture debt and asset-light businesses. 

Planned Investments Across Sectors 

The fund is to invest in 12 to 15 transactions, with an average investment size of nearly ₹200 crore.  

The company plans to deploy capital across sectors including infrastructure, healthcare, manufacturing, industrials, renewable energy, specialty chemicals, auto components and financial services. 

According to ASK Alternates, these sectors continue to see demand for structured financing from companies seeking funds for expansion, refinancing, and other business requirements. 

The company also said the fund may support transactions linked to mergers and acquisitions, promoter financing, and corporate restructuring. 

Performance of First Fund 

Earlier this year, ASK Alternates completed deployment of its first private credit fund, which had a corpus of around ₹569 crore. The average deal size in the first fund stood at about ₹50 crore to ₹55 crore. 

The company stated that the first fund invested in asset-heavy businesses with established operations. Around 70% of the portfolio companies were backed by private equity investors. 

ASK Alternates completed 12 transactions under the first fund and exited 3 investments. The company also made multiple distributions to investors during the investment cycle. 

Growth in Private Credit Segment 

India’s private credit market has seen higher activity over the past 2 years as companies increasingly look beyond traditional bank funding. 

Several firms, including Motilal Oswal Alternates, Edelweiss and Vivriti Asset Management, have launched private credit funds in recent months. Global firms such as Blackstone Group and KKR have also expanded operations in the segment. 

According to EY, India’s private credit market recorded 166 deals worth $12.4 billion over the last year, up 35% from 2024. 

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Conclusion 

The 2nd fund will also include a feeder structure through GIFT City and a longer reinvestment period for investors. 

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