(Bloomberg) -- Nippon Life India Asset Management Ltd. is planning to launch a private credit fund with as much as 20 billion rupees ($244 million), according to people familiar with the matter.
The vehicle, under the subsidiary Nippon Life India AIF Management Ltd., will focus on mid-sized companies and will include acquisition financing and financing for projects, said the people, who declined to be named because the matter hasn’t yet been publicly announced.
Private credit, where institutions and funds make loans directly to companies, has recorded rapid growth in recent years as investors hunted for returns in the era of low interest rates and is now a $1.4 trillion global industry.
In India, deals totaled more than $5.3 billion last year and strong activity was forecast to continue for another 12 to 24 months, according to a report by consulting firm E&Y from February.
A spokesman for Nippon Life didn’t have an immediate comment when contacted by Bloomberg.
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