New Delhi, Aug. 29 -- Private credit involves loans extended by non-bank financial institutions and other private lenders. The asset class has expanded at a double-digit pace over the past five years, with industry estimates putting assets under management at around $25-30 billion. It has also become increasingly common in wealth-management portfolios.

Data from EY India shows that 166 private credit transactions worth $12.4 billion were completed in calendar 2025, representing a 35% increase from 2024. Real estate was the largest segment, accounting for nearly 42% of private credit transactions. Healthcare and industrials each represented about 15%.

The growth has been driven partly by relatively less attractive expected equity returns...