Godrej Asset Management Enters India’s Private Credit Market Through Its Maiden AIF, Targeting ₹2,000 Crore Fundraise
Mumbai : Godrej Industries Group, through its Asset Management Company (AMC), today announced the launch of a Category-II Alternative Investment Fund (AIF), marking the Group’s entry into India’s growing private credit market. The fund will pursue a sector-agnostic performing credit strategy focused on established private mid-market companies with demonstrated operating performance and cash flows. Financing will be backed by hard collateral and comprehensive covenant protections.
The fund targets a corpus of ₹2,000 crore, comprising a base corpus of ₹1,000 crore and a greenshoe option of an additional ₹1,000 crore. It will be offered through private placement to eligible investors, including High Net Worth Individuals (HNIs), Ultra High Net Worth Individuals (UHNIs), family offices and institutional investors.
The fund will focus on performing businesses and provide flexible capital solutions across growth financing, acquisitions, refinancing and working capital requirements, evaluated on business fundamentals, credit quality and repayment capacity. The investment strategy will be anchored in direct origination, prioritising companies with which the team has established relationships. An established investment pipeline will support active capital deployment; minimise cash drag and maintain underwriting discipline.
Manish Shah, Non-Executive Director, Godrej AMC and MD & CEO, Godrej Capital said, “Over the years, we have steadily expanded our financial services presence, first through lending and more recently through wealth management. Private credit is a natural extension for us. Many well-run mid-sized businesses need capital that offers greater flexibility than conventional financing, without requiring them to dilute equity. We see an opportunity to address that need by combining our understanding of Indian businesses with disciplined capital. The fund also marks an important step in building our asset management capabilities and broadening our financial services portfolio.”
Pavan Manchala, CIO, Private Credit added, “Private credit in India is entering an important phase as established businesses increasingly seek capital tailored to their specific needs. Having invested across credit cycles, we believe enduring outcomes come from identifying resilient businesses, structuring capital thoughtfully, and maintaining underwriting discipline. Our focus will be on providing flexible capital to strong businesses, backed by prudent risk management and long-term partnerships that support their growth ambitions.”
The fund marks a significant step in the Group’s expansion of its financial services portfolio, extending its capabilities into India’s growing private credit market. The focus will be on building a diversified portfolio of credit investments, providing capital to well-managed private mid-market companies with strong business fundamentals, and delivering attractive risk-adjusted returns while maintaining a strong emphasis on capital preservation
