Private Credit Market Update: February 2026 The Indian private credit landscape has entered a high-growth phase, with total assets under management (AUM) reaching **$30 billion** as of early 2026. This surge is underpinned by a **53% year-on-year increase** in deal value during the most recent semiannual period, where total deployments touched **$9.0 billion**. Vivriti Asset Management (VAM) continues to capitalize on this momentum, reporting a robust **27% growth** in assets under management for the group. The firm has successfully scaled its portfolio to over **INR 13,000 crore**, supported by a track record of **INR 33,000 crore** in total investments since inception. Strategic Growth and Scaling Vivriti has outlined a target growth rate of **25% to 30%** annually over the next five years. To support this trajectory, the firm is preparing to launch a new diversified bond fund with a target of **INR 5,000 crore**, plus a greenshoe option of **INR 2,000 crore**. The mid-market segment remains the primary driver of this expansion. VAM has deployed capital across more than **116 companies** in sectors including logistics, infrastructure, and steel manufacturing. Average yields for investors in these private credit strategies remain attractive, typically ranging between **13% and 14%**. Market Dynamics and Trends The market is shifting toward more sophisticated structures as it matures. Key trends for 2026 include: * **Refinancing Demand:** A projected **$620 billion** in high-yield debt is set to mature globally through 2027, creating a significant "refinancing wall" that private credit is expected to bridge. * **Regional Expansion:** VAM is specifically targeting the eastern India market, where family offices and high-net-worth individuals currently contribute only **6%** to the national alternative debt pool. * **Investor Base:** Institutional appetite remains high, with over **80%** of private credit investors planning to maintain or increase their allocations throughout 2026. Regulatory and Operational Environment New regulatory frameworks are enhancing transparency across the Alternative Investment Fund (AIF) ecosystem. As of February 2026, India hosts **1,768 registered AIFs** with total commitments reaching **INR 13.49 trillion**. Recent SEBI mandates now require AIFs to disclose unit valuations through central depositories by May 2026. Additionally, the Reserve Bank of India has implemented new directions for regulated entities, limiting individual bank exposure to **10%** of an AIF’s total corpus. These measures are designed to curb systemic risk while allowing the private credit sector to function as a vital liquidity provider for mid-market enterprises.