The fund has realised around ₹8,700 crore through these exits, including a recent ₹950 crore exit from a global agrochemical platform, the company said.
Two investments remain in the portfolio and are currently being managed for exit, according to EAAA.
ESOF III, which was launched as a performing credit fund, had a corpus of ₹7,250 crore and provided customised financing solutions to companies for requirements such as acquisitions, growth capital, stake consolidation and refinancing.
EAAA said the fund remains on track to achieve its targeted gross internal rate of return (IRR) of 16-18%.
Amit Agarwal, CEO of EAAA Alternatives, said the return of the drawn investor capital before the completion of the remaining exits reflects the fund’s focus on capital preservation and portfolio management.
EAAA Alternatives manages investments across private credit and real assets. The platform reported assets under management of ₹72,706 crore as of March 31, 2026.
What are private credit funds?
Private credit funds are investment vehicles that provide loans or structured financing to companies outside the traditional banking system.
These funds raise capital from investors and deploy it by lending to businesses for various requirements, including acquisitions, expansion, refinancing of existing debt and other corporate financing needs.
Unlike bank loans, private credit financing is usually customised based on the borrower’s requirements. The fund and the company negotiate terms such as repayment schedules, interest rates, security arrangements and other conditions.
How do private credit funds generate returns?
Private credit funds typically earn returns through interest income and financing-related fees paid by borrowers. Investors receive returns based on the performance of the underlying credit portfolio.
Since these funds lend directly to companies and often take exposure to businesses that need customised financing, they generally carry higher risks compared with traditional fixed-income products.
Who invests in private credit funds?
In India, private credit strategies are typically offered through Alternative Investment Funds (AIFs). These products are generally accessed by institutional investors, family offices and high-net-worth individuals.
Unlike mutual funds, which are available to a wider retail investor base, private credit funds usually require larger investment commitments and involve longer investment horizons.
What are the risks in private credit investing?
Private credit investments are subject to credit risk, which means borrowers may delay repayments or default on their obligations. Investors also face liquidity risks as these investments are not usually traded on public markets and may not be easily exited before maturity.
The performance of such funds depends on the quality of their underlying borrowers, the fund manager’s credit assessment process and the broader economic environment.
