Mumbai: High-yield private credit investors Cerberus Capital, Ares SSG, Varde Partners, and Davidson Kempner are raising their bets in the Indian market as many stressed firms, largely cut off from bank funding, offer an opportunity. These investors see many opportunities, such as those at Jaiswal Neco, Kesoram Industries and Suzlon Their interest is driven by the potential returns and opportunities offered by such issuances. "The private credit market is buzzing with excitement after the success of the largest low-grade rupee-denominated debt sale that offered an attractive high yield," said a private credit fund manager. Borrowers in this market are typically companies with positive Ebitda but face challenges in servicing their debt.Performing private credit funds aim for returns of 13-14%, high-yield funds target 15-18%-20%, and special situation funds seek returns of 21% to 24%. For instance, Edelweiss Alternatives is in this space identifying opportunities for domestic and global investors through its private debt and real assets strategies, prioritising long-term patient capital with a focus on sustainability.

Source: Economic Times August 02, 2023 13:00 UTC