JM Financial Asset Management has announced the launch of its second performing credit Alternative Investment Fund (AIF), aiming to capitalise on the rapid growth in India’s private credit market and rising investor appetite for structured credit opportunities.
A performing credit fund is a type of private credit or alternative investment fund that lends money to companies that are financially stable and are already servicing their debt obligations on time.
The new fund, JM Financial Select Credit Fund II (SCF II), is a Category II AIF with a base corpus of Rs 1,000 crore and a greenshoe option of an additional Rs 1,000 crore.
A greenshoe option allows the fund manager to raise additional money over and above the original target corpus if investor demand is strong.
The fund will focus on investing in performing credit opportunities across sectors by backing companies with stable cash flows, strong business fundamentals, and credible promoter track records.
The launch marks another step in the company’s expanding alternatives platform as it looks to strengthen its presence in India’s growing private market ecosystem. The strategy seeks to provide structured financing solutions to businesses while offering investors attractive risk-adjusted return opportunities.
“Indian private credit market is evolving rapidly as companies increasingly seek flexible and tailored financing solutions beyond traditional sources of capital,” says Amitabh Mohanty, Managing Director and CEO of JM Financial Asset Management Ltd.
He added that the second performing credit fund reflects the company’s commitment to building a diversified alternatives platform capable of addressing changing capital requirements while maintaining a strong focus on underwriting discipline and governance.
The strategy will be led by Amit Dharod, Managing Director, Alternative Assets at JM Financial Asset Management, who joined the firm from Ascertis Credit, formerly known as BPEA Credit. Dharod brings more than 25 years of experience across institutions including ICICI Bank, GE Capital Services India, and Royal Bank of Scotland.
The company said the fund will leverage JM Financial Group’s integrated ecosystem across investment banking, capital markets, and credit businesses to access differentiated deal flow and strengthen origination capabilities.
The launch comes at a time when India’s AIF industry is witnessing robust growth. According to SEBI data cited by the company, total commitments in the AIF industry stood at Rs 15.74 lakh crore as of December 2025, with Category II AIFs accounting for the largest share at Rs 11.64 lakh crore.
JM Financial Asset Management said the latest fund launch is aimed at tapping this growing investor interest in private credit strategies while also addressing the evolving financing needs of Indian businesses.
