Consultancy firm Alvarez & Marsal India recruits Apollo's Arpito Mukerji as Managing Director.
Private Credit Market Booms in India, Attracting Global Investment
The Indian private credit market is experiencing a significant surge, with a record investment of $9.0 billion in the first half of 2025. This represents a 53% increase compared to the same period in 2024, according to recent reports.
This growth can be largely attributed to large deals such as Shapoorji Pallonji Group's $3.1 billion refinancing, as well as transactions by Adani Group and GMR Infra Enterprises. The private credit market is increasingly filling funding gaps left by banks, particularly in the infrastructure and real estate sectors. Global funds are actively participating in large and complex deals, driving the market's expansion.
Fund managers remain bullish on real estate, ranking it among the top sector preferences, alongside manufacturing and energy. The expectation is that deal activity will continue to rise, fueled by increased competition driven by international capital inflows and the emergence of alternative credit platforms.
The real estate sector in India is also attracting increasing investment and policy support. The Indian real estate market is projected to grow to $5.8 trillion by 2047, contributing 15.5% of GDP, up from the current 7.3%. Policy measures such as 100% FDI allowance for township development and tax incentives following the Union Budget 2025-26 aim to boost demand and ownership.
Initiatives like PM Awas Yojana Urban 2.0 have earmarked substantial funding (Rs. 10 lakh crore or about $120 billion) to address affordable housing for urban poor and middle-class families. Foreign private equity investments into Indian real estate have risen to approximately $3.1 billion in FY25 from $2.6 billion in FY24, reflecting growing global investor confidence.
The introduction of a new regulatory framework for Small and Medium Real Estate Investment Trusts (SM REITs) is expected to enhance capital inflows and liquidity in the real estate market, providing more structured and efficient financing channels.
In a recent development, Arpito Mukerji has joined A&M India from Apollo Global Management's Asia real estate group. Mukerji, with over 30 years of experience in private credit, banking, and real estate, will be responsible for scaling Alvarez & Marsal's debt financing vertical in India. Himanshu Bajaj, managing director and head of A&M India and GCC, stated that India is entering a pivotal phase where access to tailored capital solutions is becoming a strategic imperative for businesses.
Mukerji has held senior leadership positions at Bank of America Merrill Lynch, UBS, GE Capital, and ABN AMRO Bank, in addition to his previous roles. At Apollo Global Management, Mukerji was part of the founding investment team and led marquee real estate transactions across India. Alvarez & Marsal's structured finance and private credit advisory offering specializes in bridging capital dislocations in sectors such as real estate, infrastructure, metals and mining, renewables, and special situations.
Mukerji also mentioned that real estate markets in India are evolving beyond traditional models, driven by institutional capital and regulatory evolution. With over $7bn to $8bn of private credit being deployed annually in India over the past two years across more than 200 deals, according to Alvarez & Marsal, the future looks promising for the Indian private credit market.
Read also:
- Industrial robots in China are being installed at a faster rate than in both the United States and the European Union, as the global market for these robots faces a downturn.
- Stock markets in India anticipated a moderate opening, influenced by mixed signals from global markets.
- Tesla's Model Y ride-sharing service halts operations in New York City
- Experienced a 4,000-mile journey in my 2025 Lexus GX 550 on Trail, found the vehicle packed with power, yet the infotainment system exhibited a disconcerting habit of resetting my personal settings arbitrarily.
