Mumbai, February 18 Private credit investments jumped by 35% to USD 12.4 billion in 2025, despite a slowdown in the second half of the year, a report said on Wednesday.
Entities in the real estate and healthcare sectors were the largest borrowers in this space, which is increasingly becoming a lucrative alternative for borrowers who cannot meet their funding requirements from the banking sector and offers higher returns to investors.
"While deal activity moderated in H2 2025 after a strong first half, the calendar year 2025 closed at USD 12.4 billion across 166 transactions, reflecting a 35% year-on-year growth in value," said Vishal Bansal, a partner for debt and special situations at EY India.
Overall deployments in H2 2025 at USD 3.4 billion were marginally higher than the USD 3.3 billion in the previous year, it said.
More than 35% of the capital deployed in H2 2025 was allocated towards refinancing, acquisition financing, and capital expenditure, indicating sustained demand for both balance sheet optimization and growth-oriented funding, it said.
While deals exceeding USD 100 million represented 9% of the total deal count, they accounted for nearly 36% of the aggregate deal value, the report said, listing out major transactions during July-December.
These included USD 193 million raised by a PharmEasy group entity and USD 183 million raised by a Shapoorji Pallonji Group entity for refinancing purposes, as well as USD 182 million secured by the GMR Group for refinancing and further investments across group companies, it said.