NewsVoir
Mumbai (Maharashtra) [India], November 7: India's apex industry body for alternative assets, the Indian Venture and Alternate Capital Association (IVCA), announced the IVCA Private Credit Summit 2024, an initiative in collaboration with Avendus, EAAA India Alternatives Limited, InCred Alternative Investments, Lighthouse Canton, and Neo Asset Management. The Summit will bring together seasoned professionals of the private credit ecosystem including insurance companies, pension funds, family offices (FOs), high-net-worth individuals (HNIs), limited partners (LPs), and private credit funds.
With the Indian economy projected to reach a GDP of $5 trillion by 2027-2028 and $30 trillion by 2047, the need for capital availability is likely to increase. The IVCA Private Credit Council led by Co-Chairs Kanchan Jain, Head of Ascertis Credit Group (erstwhile BPEA Credit Group), and Vineet Sukumar, Founder & Managing Director of Vivriti Group, alongside other industry experts, strive to ensure that private credit plays a transformative role in India's financial landscape. To further the council's cause, the Private Credit Summit 2024 aims to highlight opportunities and strategies driving the sector's growth, with an emphasis on investor insights and key regulatory reforms, as well as market depth across all private credit asset classes. A roundtable discussion is also on the agenda, so that participants can have meaningful conversations with experts on private credit, exploring topics that are crucial to the financial landscape.
Kanchan Jain, Head of Ascertis Credit Group & Co-Chair, IVCA Private Credit Council said, "Private credit helps channel existing savings and solves for a range of bespoke yet important needs of a growing corporate sector. Private credit solutions can thus provide attractive and resilient returns without the volatility associated with equity markets. Sophisticated real-money institutional investors rely on local credit managers to source, underwrite, and manage such investments."
After developing globally for three decades, this asset class is now well-positioned to channel long-term and steady inflows in India. Additionally, it attracts domestic ultra-high-net-worth investors, insurance and pension funds, and global real money investors looking for reliable returns. Private credit has the potential to bridge the Rs.27 lakh crore (US$ 325.3 billion) financing gap in the micro, small, and medium enterprises (MSMEs) space where significant debt investment will be necessary to fund critical areas such as infrastructure, climate transition, and agriculture while offering non-dilutive finance solutions for mid-market and large corporations, in addition to regular bank lending. Its evolving sub-asset classes, such as growth, distressed, and special situations financing, enable efficient and transparent capital allocation, making it an essential tool for catalysing private capex and unlocking capital inflows that cannot be deployed elsewhere in Asia.
Vineet Sukumar, Founder and Managing Director of Vivriti Group & Co-Chair, IVCA Private Credit Council said, "India's growth story hinges on the revival of corporate capex, for which a necessary pre-condition is access to debt capital. Private Credit will play a pivotal role in bridging the financing gap for mid-market corporates and MSMEs - providing term finance, flexible structures, speed and size. The Private Credit industry thus has the potential to become a transformative force in meeting India's vision for 2047. The IVCA Private Credit Summit 2024 will foster meaningful conversations among industry experts, investors, and policymakers, highlighting opportunities, strategies, and regulatory reforms driving the sector's growth."
Furthermore, recent regulatory improvements in India have strengthened private credit, including stronger due diligence for asset management companies and key managerial personnel, the introduction of large value funds, standardised portfolio valuation, performance benchmarking, and a framework for scheme liquidation. A robust private credit ecosystem will act as a primary factor of economic growth in India, providing entrepreneurs and small businesses with improved access to capital. This will empower them to innovate, scale their operations, and create jobs, ultimately boosting economic activity and significantly contributing to the country's GDP growth.
The Indian Venture and Alternate Capital Association (IVCA) is a not-for-profit, apex industry body promoting the alternate capital industry and fostering a vibrant investing ecosystem in India. IVCA is committed to supporting the ecosystem by facilitating advocacy discussions with the Government of India, policymakers, and regulators, resulting in the rise of entrepreneurial activity, innovation, and job creation in India and contributing towards the development of India as a leading fund management hub. IVCA represents 46% of overall AIFs in the country, and its members are the most active domestic and global VCs, PEs, funds for infrastructure, real estate, credit funds, limited partners, investment companies, family offices, corporate VCs, and knowledge partners. These funds invest in emerging companies, venture growth, buyouts, special situations, distressed assets, and credit and venture debt, among others.
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