HDFC Asset Management Company (AMC) has officially announced its foray into India's rapidly expanding private credit market with the launch of its 'Structured Credit Fund-I'. The fund aims to provide alternative debt financing to underserved mid-market companies in India. The target corpus for this new fund is ₹1,500 crore, with an additional green-shoe option allowing it to raise another ₹1,000 crore, potentially bringing the total fund size to ₹2,500 crore. Confirming the significance of this venture, the International Finance Corporation (IFC), a member of the World Bank Group, has committed up to ₹220 crore as an anchor investor in the Structured Credit Fund-I. This partnership underscores a shared vision to expand access to appropriate financing for mid-sized enterprises crucial for India's industrial output and employment. The fund has already achieved its first close, securing approximately ₹1,290 crore in commitments from a diverse group of institutional investors, family offices, and ultra-high-net-worth individuals (UHNIs). HDFC AMC itself will contribute up to 14% of the fund's corpus. The investment strategy involves deploying capital into secured credit instruments across various sectors, excluding real estate, with a focus on delivering mid-teen returns over a four-to-six-year investment horizon. This initiative is expected to strengthen India's private credit ecosystem, support job creation, and drive product and market innovation by offering flexible debt solutions where traditional financing often faces limitations. HDFC AMC's move into private credit positions it alongside other major asset managers tapping into this growing segment.