Large Private Credit Deals Account For 50% Of Market, Says Barclays India CEO

Barclays has been actively participating in private credit transactions, including its recent involvement in financing the Hinduja Group's acquisition of Reliance Capital

Barclays secured the second spot in India’s M&A league tables last year

Source : Wikipedia

Private credit funding is expanding both in size and complexity as businesses increasingly pursue varied financing options, says Pramod Kumar, CEO and Head of Investment Banking – India at Barclays. In an interview with Mint, Kumar highlighted that private credit deals worth over $100 million now make up nearly 50 per cent of the market.

Barclays has been actively participating in private credit transactions, including its recent involvement in financing the Hinduja Group's acquisition of Reliance Capital. With increasing competition in smaller deals, the UK-based bank is now focusing more on larger, more complex transactions, according to a Mint report.

“With stock markets facing selling pressure and public listings slowing down, financing opportunities are emerging,” Kumar told the publication. He anticipates that 2025 will see a balanced mix of equity and debt financing, incorporating private credit, debt capital markets, and market borrowings, given the uncertainty surrounding equity raises.

Kumar also pointed to several key factors driving financing activity, including greater sponsor involvement, delayed exits due to weaker IPO markets, and aggressive domestic M&A activity by industrial conglomerates.

M&A League Tables

Barclays secured the second spot in India’s M&A league tables last year, executing significant deals such as Bharti Group’s $4 billion investment in UK telecom giant BT Group and the EQT-Temasek sale of 4.7 GW of renewable assets to JSW. The bank also played a key role in rupee financing, supporting Mankind Pharma’s acquisition of Bharat Serum. Looking ahead, Kumar anticipates continued M&A and financing activity in sectors like TMT (technology, media, and telecom), healthcare, pharma, infrastructure, renewables, and financial services. While the tech sector has slowed over the past two years, he expects a resurgence in 2025, driven by improved valuations.

Earlier this week, Barclays announced a Rs 2,300 crore capital infusion into its Indian operations, following a Rs 3,000 crore investment in 2021. This brings its total capital investment in India to over Rs 12,400 crore, aiming to expand its presence among corporate and ultra-high-net-worth clients.

In FY24, Barclays India reported a net profit of Rs 785 crore, an increase from Rs 669 crore in FY23. Its total assets stood at Rs 53,910 crore by the end of the fiscal year, according to Mint. India Ratings data indicates that Barclays India’s loan portfolio primarily consists of term loans (49.2 per cent), bill discounting (35 per cent), and working capital loans (15.8 per cent).