{
  "id": 2262748,
  "title": "Local funds' share rises in private credit market: EY report",
  "url": "https://urgent.news/2026/08/20/local-funds-share-rises-in-private-credit-market-ey-report",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-20T17:48:51.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/local-funds-share-rises-in-private-credit-market-ey-report/articleshow/133390197.cms"
  },
  "original_language": "en",
  "account": "Mumbai witnessed a surge in the private credit market in the first half of 2026, with domestic funds playing a pivotal role. According to a report by EY, domestic funds accounted for 74% of the deal value, while contributing to nearly 79% of the transaction volume. The investments reached a total of $3.5 billion across more than 100 transactions, each exceeding $10 million. The numbers were comparable to the second half of 2025, amounting to $3.4 billion.\n\nVishal Bansal, a partner at EY India specializing in debt and special situations, highlighted that the rising share of domestic capital is a significant development in India's private credit market.\n\nThe growth in private credit is driven by the escalating demand for corporate financing. Bank credit to large industries increased from 4.6% in calendar 2025 to over 14% in the first five months of 2026. Bank financing for micro, small, and medium enterprises (MSMEs) has expanded at a double-digit pace for four consecutive years.\n\nPrivate credit is anticipated to benefit from the ongoing capital expenditure cycle. In terms of deal value for H1 2026, real estate dominated with 35%, followed by healthcare at 13% and food and beverage at 12%. Notably, the share of food and beverage sector saw a sharp rise from just 1% in the second half of 2025.\n\nReal estate is expected to remain a significant private-credit segment, particularly for land acquisition and pre-approval financing, where traditional bank and non-banking financial company (NBFC) funding remains limited. Infrastructure, renewables, and energy could also emerge as larger themes as capital requirements escalate. Global funds are likely to continue their dominance in large-ticket deals due to their ability to write larger cheques, while domestic funds are increasingly expected to participate through co-investments, according to EY.",
  "summary": "Private credit investments were broadly similar to the second half of 2025 levels of $3.4 billion, with refinancing, holding-company funding and acquisition financing serving as key drivers of activity. \"The growing share of domestic capital is one of the most significant developments in India's private credit market,\" Vishal Bansal, partner, debt and special situations, EY India, said.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}