Private equity players see new business opportunities in post-Covid world

Private equity (PE) players are seeing a growing business opportunity post Covid-19 in providing long-term credit lines to Indian companies, with banks and non-banking financial companies (NBFCs) reluctant to offer loans.
 

Currently, the PE exposure in credit is limited and constitutes less than a 2 per cent share of the overall credit offered to industry. Only a few players such as KKR, AION Capital, SSG, and Edelweiss offer the product.
 

“The current situation could open up significant opportunities for private credit, essentially long-term credit to strong corporates to meet their requirements,” said Parth Gandhi, senior partner and MD, AION Capital.