Private Credit Emerging as Mainstream Asset Class in India: Sundaram Alternates MD Karthik Athreya
Sundaram Alternates MD Karthik Athreya says, “…Private credit is slowly moving from a new asset class to part of mainstream as far as the Indian credit industry is concerned… As banks start to rationalise their books, become risk-averse just like western markets, I think the Indian markets also are interestingly moving to make way for non-bank credit and private credit has assumed an increasing role. So I think it's very much part of the mainstream today. I think it is simply lending in its various forms, and there are different categories, but as opposed to, let's say, a debt mutual fund or corporate bonds, which largely deal with listed and rated securities where you can buy a AAA security or single-layer security, private credit does not require underlying instruments that go into its portfolio to be listed and rated… So there is a substantial alpha which comes through the expertise and packaging of private instruments.”
