Godrej Industries launches private credit fund targeting ₹2,000 crore

Godrej Industries Group announced its foray into private credit markets on Tuesday, establishing a new Category II alternate investment fund (AIF) through Godrej Asset Management Company. The fund targets raising a minimum of ₹1,000 crore with a total corpus objective of ₹2,000 crore, including a greenshoe option for additional capital mobilisation.

The fund will operate as a sector-agnostic platform focused on established private mid-market companies, offering performing credit solutions backed by hard collateral and comprehensive covenant protections. This lending strategy aims to provide structured financing to mid-sized enterprises seeking capital without diluting equity stakes.

The initiative marks the group's latest diversification move under the leadership of Pirojsha Godrej, who recently took over as chairperson. Capital will be raised from eligible investors including high net worth individuals, ultra-high net worth individuals, and family offices, positioning the fund within the growing alternative investment ecosystem in India.

The entry into private credit reflects broader trends among Indian conglomerates seeking to leverage their balance sheet strength and financial expertise in the non-banking finance sector, which has experienced significant growth as traditional lending channels face capacity constraints.