ASK Alternates, part of the Blackstone-backed ASK Asset & Wealth Management Group, has launched its second private credit fund with a target corpus of ₹2,500 crore, including a ₹1,500 crore greenshoe option. According to reports from Mint, the new fund will continue ASK's performing credit strategy, targeting 14-16% gross internal rate of return (IRR) by investing in market-leading businesses backed by reputed Indian promoters, global private equity, and sovereign wealth firms. The fund is expected to invest in 12-15 transactions spread across infrastructure, healthcare, manufacturing, industrials, renewables, specialty chemicals, auto components and financial services sectors, with particular focus on high-priority sectors that match current government priorities.
The company's second fund will follow a similar strategy to the first, focusing on senior secured lending with tangible collateral while avoiding exposure to real estate, distressed debt, venture debt, and struggling or asset-light businesses. As reported by Mint, Shantanu Sahai, head of private credit at ASK Alternates, emphasized that the focus remains on capital preservation – businesses that will survive and flourish even in the event of an economic fallout. The firm assesses the order of impact that particular events may have before investing in specific companies or sectors, maintaining a cautious approach to risk management.
The launch comes amid intensifying competition in India's private credit market, where companies are increasingly turning to alternative lenders for faster and more flexible financing than traditional banks can typically provide. According to Mint, over the past 12 to 18 months, firms including DMI Alternatives, Ascertis Credit, Motilal Oswal Alternates, True North, Edelweiss, Multiples Alternate Asset Management, Prabhudas Lilladhar, 360 One Asset and Vivriti Asset Management have launched new funds. Global heavyweights such as Blackstone Group and KKR are also setting up dedicated platforms, while the National Investment and Infrastructure Fund (NIIF) announced a $2 billion plan to attract global capital into the asset class.
ASK successfully closed and deployed its maiden private credit fund earlier this year, which was about ₹569 crore in size with an average ticket size of about ₹200 crore. As reported by Mint, the fund comprised vintage, old economy and asset-heavy market-leading businesses with an average Ebitda of ₹1,700 crore. About 70% of the portfolio companies are either owned or backed by private equity investors, reflecting ASK's focus on governance standards. The fund delivered around 15% gross IRR, with the company exiting three investments, completing three re-deployments and eight distributions from the first fund.
India's private credit market touched $12.4 billion across 166 transactions over the last year, marking a 35% increase in deal value compared with 2024, according to a report by consulting firm EY. The second fund will feature a longer reinvestment period of 3.5 years and a feeder structure through Gujarat International Finance Tec-City (GIFT City), aimed at attracting offshore investors. ASK Group has increased its own commitment to the second fund fourfold to as much as ₹100 crore, with most of the 170 investors from the first fund expected to invest again due to established track record and improved investor economics.
