Axis AMC to Launch 3rd Private Credit AIF to Raise ₹2,000 Crore

As per Mint report, Axis Asset Management Company (AMC) is preparing to roll out its third private credit alternative investment fund (AIF) with a target size of ₹2,000 crore to meet rising demand in India’s private credit market.  

The fund will follow the complete deployment of Axis’s previous structured credit vehicle and aims to tap into the growing financing gap in mid-market sectors. 

Axis AMC’s New Private Credit Fund Structure 

The upcoming private credit AIF, titled Fund III, will start with a base target of ₹1,000 crore and incorporate a green-shoe option for an additional ₹1,000 crore. Axis AMC finalised its last structured credit fund at ₹740 crore and has now fully deployed it.  

Fund III will see larger average ticket sizes of ₹125 crore, compared to ₹60 crore to ₹65 crore earlier. It plans to focus on structured credit opportunities among mid-sized manufacturing and industrial enterprises. 

Sharp Uptick in Private Credit Deployment 

Private credit deployment in India reached $9 billion across 79 transactions exceeding $10 million in the first half of 2025. This marks a 53% increase compared to the same period in 2024. Favourable interest rate conditions and funding needs in areas such as infrastructure and real estate have contributed to this growth.  

The Indian market remains significantly underserved, despite increasing involvement from private equity funds, institutional investors, and global fund managers. 

Read More: Prudential Divests 4.5% Stake in ICICI Prudential AMC for ₹4,900 Crore Ahead of IPO! 

Axis AMC’s Strategic Investment Focus 

Axis AMC intends to steer Fund III towards conventional sectors such as manufacturing and industrial businesses. Passive infrastructure categories like warehousing, data centres, and renewables will also be considered selectively.  

The fund will avoid investments in NBFCs and new-age startups, particularly those involved in unsecured lending, due to early signs of stress. The expected yield from the fund’s investments will typically remain in the 13% to 14% range, aligning with preferences of institutional investors for stable returns with moderate risk. 

Conclusion 

Axis AMC’s plan to launch a ₹2,000 crore private credit fund reflects the growing traction of alternative debt financing solutions in India. With a focused approach on mid-market segments and structured credit, the fund aims to fill a widening gap left by traditional lenders and expand its presence in the flourishing private credit ecosystem. 

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Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.