Whalesbook
Private Credit Push Amid Global Slowdown
360 ONE Asset Management is actively seeking to raise $500 million for its sixth private credit fund. This move comes as the global private credit market faces a significant slowdown, marked by increased caution over loan quality and the emerging impact of technologies like AI on certain sectors.
The fund's planned June launch is designed to leverage India's comparatively strong fundraising environment, which differs from trends seen internationally where many firms are struggling.
Investment Strategy and Firm Growth
The new fund will provide capital for mid-sized Indian companies, supporting activities like acquisitions and refinancing. It will also target special situations and stake buyouts.
This initiative aligns with the expansion of 360 ONE Asset's alternative investments division. By the end of fiscal year 2026, this arm saw its assets grow by 23% to $60 billion. The firm's previous private credit fund, its fifth, closed in March with approximately $400 million.
Other Indian firms are also raising capital. Lighthouse Canton is aiming for 12 billion rupees, and InCred Alternative Investments recently closed its first special situations credit fund at 15 billion rupees.
Market Risks and Considerations
Despite India's market resilience, global private credit challenges pose risks. Concerns about loan quality and the potential disruption from AI in sectors like software could increase non-performing assets. Relying on high-net-worth individuals and family offices, while a strong base, can also introduce concentration risk compared to a more diversified investor base.
The firm's alternative investments division operates within a complex regulatory environment that could change, affecting future strategies.
Future Prospects
The success of 360 ONE Asset's new fund will depend on its ability to navigate the cautious global credit climate while benefiting from India's economic growth. Investor interest, especially from overseas institutions looking for India exposure, will be crucial. The ongoing growth in the firm's alternative investments division shows a commitment to broadening its asset management capabilities.