Archive · 24 Nov 2025
India's Alternative Investment Funds and Private Credit Boom
India's investment scene is growing fast, especially in Alternative Investment Funds (AIFs) and private credit.
These are special funds that offer different ways to invest money, like lending to companies or buying parts of buildings.
Many rich people and big investors are putting their money here because it gives them steady returns and is less risky than other investments.
A place called GIFT City is becoming a big center for these investments.
Experts say this growth is happening because more people have a lot of money, and the rules for investing are getting better.
By 2030, many more Indians will have over a million dollars, which means even more money will go into these funds.
AIF assets reach Rs 15,05,372 crore by 2025, growing at 49.23% CAGR since 2015
Private credit AUM reaches about $25–30 billion for FY2025 and is projected to more than double to US$60–70 billion by 2028
India emerges as the second-largest real estate private credit market in the Asia-Pacific region, accounting for 36% of regional fundraising between 2020 and 2024
GIFT City IFSC becomes a major hub for cross-border capital, with AIF commitments rising significantly
Number of Indians with over $1 million in net worth expected to rise to 19.4 lakh by 2030
- Who
- High net worth individuals (HNIs), family offices, and institutional investors
- What
- Invested in Alternative Investment Funds (AIFs) and private credit
- When
- Over the past decade (2015-2025) and projected growth until 2028 and 2030
- Where
- India, with GIFT City emerging as a major hub
- Why
- To seek resilience, long-term wealth creation, and stable, high-risk-adjusted returns
- AIF Assets in 2015
- Rs 27,484 crore
- AIF Assets in 2025
- Rs 15,05,372 crore
- PMS Assets in 2015
- Rs 1.27 crore
- PMS Assets in 2025
- Rs 8.37 crore
- Private Credit AUM in 2025
- US$25–30 billion
- Projected Private Credit AUM by 2028
- US$60–70 billion
- India's Share in APAC Private Credit Fundraising (2020-2024)
- 36%
- Expected Indians with over $1 million in net worth by 2030
- 19.4 lakh