Global PEs bullish on India credit business even as NBFCs feel the pinch

Global private equity fund managers such as Brookfield Asset Management and KKR are bullish about the credit business in the country at a time when non-banking financial companies (NBFCs) are going through a severe liquidity crunch.

NBFCs have been battling liquidity issues since the IL&FS defaulted in August last year. They have been raising funds overseas, selling mortgaged assets, among others, to shore up their balance sheets and correct asset-liability mismatch. Loan sanctions by NBFCs have fallen 31 per cent in the fourth quarter of FY19 due to a crisis in the sector. 

Canada’s Brookfield, which runs an alternative investment