Private Credit Investments Jump 35% To $12.4 Billion In 2025: Report

Private credit investments jumped 35 per cent to USD 12.4 billion in 2025, despite a lull in the second half of the year, a report said on Wednesday.

Entities in the real estate and healthcare sectors were the biggest borrowers in the space, which is increasingly turning into a lucrative alternative for borrowers not able to meet their funding requirements from the banking sector and offering higher returns to investors.

"While deal activity moderated in H2 2025 after a strong first half, calendar year 2025 closed at USD 12.4 billion across 166 transactions, reflecting a 35 per cent year-on-year growth in value," Vishal Bansal, a partner for debt and special situations at EY India, said.

The overall deployments in H2 2025 at USD 3.4 billion were marginally higher than the USD 3.3 billion in the year-ago period, it said.

More than 35 per cent of capital deployed in H2 2025 was allocated towards refinancing, acquisition financing and capital expenditure, indicating sustained demand for both balance-sheet optimisation and growth-oriented funding, it said.

While deals exceeding USD 100 million represented 9 per cent of total deal count, they accounted for nearly 36 per cent of the aggregate deal value, the report said, listing out big transactions during July-December.

They 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.