Institutional investors step up bets on private credit as insurers, pension funds and DFIs back new funds

Institutional investors are now allocating more funds to private credit, significantly from insurance companies and pension funds. Neo Alternative Asset Managers has seen its second fund receive 22-25% contributions from these investors. Ascertis Credit's fourth fund also attracted commitments exceeding $700 million from multiple institutional investors. With increased interest in private credit, annual investment opportunities are now estimated around ₹1 lakh crore.