Large private credit deals now 50% of market: Barclays India CEO

As competition intensifies in smaller transactions, the UK-based bank is shifting focus toward bigger, more complex deals.

Private credit funding is growing in scale and complexity as companies seek diversified financing options, according to Pramod Kumar, CEO and Head of Investment Banking – India at Barclays Plc. Speaking to Mint, Kumar noted that the share of large private credit deals, exceeding $100 million, now accounts for nearly 50 percent of the market.

Barclays has been actively involved in private credit transactions, including its recent role in financing Hinduja Group’s acquisition of Reliance Capital. As competition intensifies in smaller transactions, the UK-based bank is shifting focus toward bigger, more complex deals, the Mint report added.

“With stock markets facing selling pressure and public listings slowing down, financing opportunities are emerging,” Kumar told Mint. He expects 2025 to see a balanced mix of equity and debt financing, including private credit, debt capital markets, and market borrowings, as raising equity remains uncertain.

Kumar highlighted key factors driving financing activity, including increased sponsor involvement, delayed exits due to weaker IPO markets, and aggressive domestic M&A moves by industrial conglomerates.

Barclays ranked second in India’s M&A league tables last year, having executed major deals such as Bharti Group’s $4 billion investment in UK telecom firm BT Group and the EQT-Temasek sale of 4.7 GW of renewable assets to JSW. The bank was also involved in rupee financing, supporting Mankind Pharma’s acquisition of Bharat Serum.

Looking ahead, Kumar sees 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 slowed over the past two years, he expects a revival in 2025, driven by improved valuations.

Earlier this week, Barclays announced a Rs 2,300 crore capital infusion into its India operations, following a Rs 3,000 crore investment in 2021. This brings its total invested capital in India to over Rs 12,400 crore. The move is aimed at expanding the bank’s reach across corporate and ultra-high-net-worth clients.

In FY24, Barclays India reported a net profit of Rs 785 crore, up from Rs 669 crore in FY23. Its total assets stood at Rs 53,910 crore at the end of the fiscal year, Mint reported. India Ratings data shows that Barclays India’s loan book consists primarily of term loans (49.2 percent), bill discounting (35 percent), and working capital loans (15.8 percent).