In an exclusive interaction with Adlin Pertishya Jebaraj, Correspondent at Finance Outlook, Dr Amit Goenka Founder Chairman, Managing Director, Nisus Finance, shares his insights on how the structured credit is quickly becoming one of the essential pillars of the Indian investment environment due to regulatory changes, the rising involvement of the private credit markets, and the escalating demand of customized financing options. 

Amit Goenka is an experienced financial analyst and entrepreneur who is well-known in alternative asset management and structured real estate funding. As the Chairman and Managing Director of Nisus Finance, he has been a driving force in the development of specialized investment platforms based on structured borrowings and income-generating assets. 

How do you see structured credit evolving within India’s investment landscape, and what factors are accelerating its adoption?

The Indian private credit market has grown at a large scale with investment of approximately US $12.4 billion dollars in 166 transactions in 2025, a growth of almost 35 percent annually. Structural shifts are leading to this expansion.

• The regulatory capital norms have made banks and NBFCs more discriminating in their lending which has led to funding shortages by mid-market corporates and real estate developers.
• The capital assigned to alternative credit by institutional investors and family offices is increasing to offer high risk-adjusted returns.
• Private credit AUM of India is already approximately as much as US $25-30 billion, but this is only 0.6% of GDP, which is an impressive space to expand.

A structured credit is positioned at the crossing of these trends providing tailored funding solutions that include downside protection and yield improvement. With the Indian corporate market constantly developing and capital markets becoming more sophisticated, structured credit appears to be a more common investment strategy.

How does structured credit differ from traditional fixed income instruments, and what unique value does it bring to investors?

Structured credit is a different kind of credit, compared to more traditional fixed income instruments, and is mainly characterized by its flexibilities and customization. The traditional bonds or bank loans tend to be standardized and have standard coupons and risk mitigation strategies.

Structured credit, in its turn, is a mixture of debt instruments with customized components, including credit enhancements, collateralization, and structured repayment waterfalls to achieve the best risk-return results.

By the method, investors have the opportunity to invest in something, which might not be available in the open bond markets. In India, the private credit strategies are able to produce a yield of up to 1822 in some parts of the market that represents a premium to the investor who is providing tailor-made and in most cases illiquid capital. More to the point, structured credit provides the benefits of diversification.

It allows investors to acquire exposure to areas of real estate, infrastructure, health and mid-market enterprises in a carefully tailored instrument instead of pure equity risk. Structured credit offers a credible compromise between the conventional fixed income and the private equity interests of institutional investors and family offices who want to obtain predictable cash flows with higher returns.

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How has the rise of private credit markets influenced the development of structured credit products in India?

The emergence of the private credit markets in India has conclusively increased the pace of development of structured credit so that it ceased to be an exclusive solution but became a common financing method.

With banks becoming increasingly risk-averse in the aftermath of IBC and under an increased regulatory control, the role of providing essential funding was taken over by the private credit in an attempt to close the most vital funding shortages especially in stressed, complex, and special situation assets. This has been a direct catalyst of orders of custom-made structured securities like the mezzanine debt, last-mile financing and hybrid credit solutions specific to turnaround situations.

Another trend that has been changed is the growing presence of family offices and institutional capital which introduces more flexibility and the longevity of the investment horizon. Their involvement has made possible more creative deal structuring that mixes debt with equity characteristics and allows them to price and match risk more precisely.

Meanwhile, corporates are already reducing their dependency on equity dilution and instead they are resorting to structured credit in order to optimize capital stacks. The customized and non-dilutive solutions of private credit which traditional lenders are unable to provide. Critically, with inflation taming and credit market normalizing, the competition and scalability of private credit are growing increasingly competitive and scalable- again intensifying its position in the financing structure of India.

Correlation wise, private credit no longer remains an alternative, but it has become the primary participant in the structured credit market of India, where innovation, flexibility and depth capital formation are promoted.

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How are financial technologies and data-driven analytics improving structured credit markets?

The development of financial technology and more sophisticated analytics is changing the way structured credit transactions are generated, evaluated, and monitored. Historically, credit underwriting used to be based on the use of historical financial statements and manual due diligence.

As an industry, lenders are more and more relying on AI-based analytics, alternative data, and real-time financial monitoring to determine the risk of borrowers in a more accurate way today. The technologies allow investors to view cash flows, trends in the sector and behavior of borrowers near real time, making credit decisions more effective. They also facilitate dynamic portfolio tracking, which enables one to notice any stress and restructure proactively in case of the need.

The amount of deals and size of tickets in the distressed credit market in India has been a top secret, despite the fact that there have been more opportunities in various sectors. This increasing activity in deals is creating more acute attention on the discipline of underwriting and management of risk, which requires more organized and refined credit appraisal models.

What is your long-term vision for structured credit in India’s investment ecosystem?

With the gradual migration of domestic institutional capital to other credit sources, structured credit policies will grow exponentially. We believe that structured credit will one day become a mainstream financing intermediary to supplement banks and public debt markets.

The structured credit will be very essential in financing the businesses, balance sheet efficiency, and the next 10 years of economic growth of India through providing customized, non-dilutive sources of capital and stable, risk-adjusted returns.