Private Credit Emerges as Key Funding Source for Indian Entrepreneurs

ENA Sectors 2024-04-25 17:15:02 New Delhi, Apr 25 (KNN) As Indian entrepreneurs seek short-term debt to bridge funding gaps caused by equity dilution pricing, private credit is rapidly rising as a major source of financing for their projects, according to top officials at PwC India. We have noticed that demand for private credit has picked up. Several large credit funds have started investing billions of dollars in Indian companies in both stressed as well as the performing credit space, said Bhavin Shah, Partner & Leader of Private Equity and Deals at PwC India, reported BS. Private credit, offered by private equity firms at marginally higher interest rates than syndicated loans, not only provides entrepreneurs with much-needed financing but also valuable global experience in running their companies. This will be India's decade, and PE investors from across the world are planning to invest in the country, stated Eric Janson, Global Head of Private Equity at PwC, highlighting the optimism surrounding entrepreneurial opportunities in India. While new private equity investments have declined over the past two years, several public market exits by PE firms were observed during the same period. Analysts anticipate that numerous companies will approach capital markets soon to provide liquidity to PE fund investors who had backed them earlier. However, tax uncertainty remains a key concern for entrepreneurs seeking private equity funding in India. Despite efforts by the central government to bring more clarity to the tax system, several PE funds continue to receive income-tax notices on previously settled issues, according to Shah. (KNN Bureau) 37555 https://knnindia.co.in/news/newsdetails/sectors/private-credit-emerges-as-key-funding-source-for-indian-entrepreneurs 2024-04-25 17:15:02 knnindia.co.in Private Credit Emerges as Key Funding Source for Indian Entrepreneurs